Top 10 Big and Best Closed End Funds CEF

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Intro

A closed end fund (CEF) is a publicly traded investment vehicle that invests in a variety of securities, such as stocks or equities and bonds or fixed income. Hence It is publicly traded, closed end funds (CEFs) is very similar to Exchange Traded Funds (ETFs). It traded like an ETF or stock, investor and trader can purchase this CEF through national stock exchange either NYSE or AMEX or Nasdaq. But unlike ETF, the amount of shares is fixed after initial public offering (IPO).


Things need to know

Several things to consider when investing in CEF are:

  1. Like ETF, there are two types of CEFs such as bond CEFs and stock CEFs. These CEFs can invest in various sector such as domestic equities, international equities, emerging market equities, taxable bond, corporate bond, multi sector bond, high yield bond, municipal bond, government bond, emerging market bond, international bond, commodities, growth stocks, value stocks, dividend stocks and more.
  2. Whether the fund market price is traded on premium or on discount towards fund net asset value (NAV). If it is traded on discount, it can provide opportunity for investors or traders.
  3. Whether it is a leverage or non leverage fund. Some CEFs use leverage to provide strategic options to achieve its objective. Leverage also increases a fund's volatility or risk.
  4. If you are investing in bond CEF, please check the bond fund average duration. The greater the average duration of a bond fund's holdings, the more its bond CEF share price will fluctuate when interest rates change.
  5. Like buying stock online or ETF online, you will need to use brokerage account to buy closed-end funds as well such as Lightspeed, Interactive Brokers, Sogotrade, Marsco, and more



Top 10 Best CEF by Asset

  1. Central Fund of Canada
  2. EV Tax-Managed Global Fund
  3. DNP Select Income
  4. Kayne Anderson MLP
  5. AllianceBernstein Income Fund
  6. EV Limited Duration Income
  7. Nuveen Municipal Value
  8. Aberdeen Asia-Pacific Income
  9. EV Tax-Managed Div Equity Inc
  10. NFJ Div Interest & Premium


Top CEF Fund Info

(click column header to sort results)
No  
Fund Name  
Ticker  
Type  
Strategy  
Effective Leverage  
Distribution Rate  
Premium / Discount  
Market Cap  
Baseline Expense  
1
Central Fund of Canada
CEF
Equity
Commodities
n/a
0.04%
7.73%
$4618M
0.34%
2
EV Tax-Managed Global Fund
EXG
Equity
Covered Call
n/a
10.50%
-7.83%
$3308M
1.06%
3
DNP Select Income
DNP
Equity
Growth & Income
35.66%
8.18%
25.28%
$2260M
1.63%
4
Kayne Anderson MLP
KYN
Equity
MLP
30.38%
6.32%
10.48%
$2101M
2.47%
5
AllianceBernstein Income Fund
ACG
Bond
Government
31.33%
6.25%
-11.11%
$1866M
0.69%
6
EV Limited Duration Income
EVV
Bond
Limited Duration
32.02%
8.76%
-6.32%
$1861M
1.02%
7
Nuveen Municipal Value
NUV
Bond
National Municipal
2.75%
5.22%
-0.55%
$1774M
0.60%
8
Aberdeen Asia-Pacific Income
FAX
Bond
Global Income
24.03%
6.21%
-7.02%
$1764M
1.19%
9
EV Tax-Managed Div Equity Inc
ETY
Equity
Covered Call
n/a
10.10%
-8.24%
$1749M
1.07%
10
NFJ Div Interest & Premium
NFJ
Equity
Covered Call
n/a
10.06%
-7.50%
$1691M
0.98%

1. Central Fund of Canada

Central Fund of Canada fund is a pure investment strategy on precious metals asset especially Gold and Silver commodities. Central Fund of Canada fund seeks to invest in alternative long term investment vehicle such as gold and silver bullion commodities. As February 2011, the total Net Asset of the fund is 4.451 billion. The fund sponsor is Central Group Alberta Ltd. The fund manager is J C Stefan Spicer since 1983.

The Top 4 sectors are Gold Bullion (55.46%), Silver Bullion (41.89%), Short Term Bond and Net current Asset (NCA). The total expense ratio is 0.34% per year. There is no distribution or yield for this CEF. As February 16, 2011, the fund market price is currently traded at 7.98% premium from the fund’s Net Asset Value (NAV).


2. EV Tax-Managed Global Fund

Eaton Vance Tax Managed Global fund objective is to provide current income with capital appreciation by investing in global common stock and through using an options strategy. The total net asset is 3.55 Billion as of February 2011. The fund is managed by Michael A Allison and Walter A. Row since 2007. The expense ratio is 1.06% per year. As February 16, 2011, the fund market price is currently traded at -8.76% discounts from the fund’s Net Asset Value (NAV). The fund has returned 5.54% over the past year and 0.14% over the past 3 years. It also pays quarterly yield of 10.75% per year. Please note some of this distribution may include return of capital (ROC).

Top 5 countries allocation of this CEF includes USA, United Kingdom (UK), Germany, France and Switzerland. There are a total of 133 holdings in this fund. The top 10 stocks holding include Vodafone Group, Nestle SA, Royal Dutch Shell Plc, HSBC Holding Plc, Novartis AG, BHP Billiton Ltd, Siemens AG ADR, Goldcorp Inc, GlaxoSmithKline Plc, and Apple Computer Inc.


3. DNP Select Income fund

The DNP Select Income Fund seeks to provide current income and long term income growth with capital appreciation through investment in equity and fixed income or bond securities of companies in the public utilities industry. This DNP Select Income is sponsored by Duff & Phelps. The fund has been managed by Nathan Partain since 1998. The expense ratio of this fund is 2.49% which include 1.63% of baseline expense and 0.86% of interest expense. This fund is also a leverage fund with 35.45% effective leverage. It also has a distribution rate of 8.02% per year, this distribution is paid monthly. The fund also has total net assets of 2.82 billion as of February 2011. As February 16, 2011, the fund market price is currently traded at 26.09% premium from the fund’s Net Asset Value (NAV).

There are 108 holdings in this CEF. The annual portfolio turnover is 18%. The fund has the following asset diversification: 68.27%of equity holdings, 25.61% of debt or bonds, 5.26% of preferred shares, and cash. The top 2 sectors are Electric & Gas and Communication. The Top 10 stock holdings include NextEra Energy Inc, Southern Company, Progress Energy Inc, AT&T Inc, Verizon Communications Inc, Xcel Energy Inc, Entergy Corporation, Pinnacle West Capital, Dominion Resources Inc, Public Service Enterprise Group (PSEG), and Northeast Utilities.


4. Kayne Anderson MLP Fund

The Kayne Anderson MLP Fund seeks a high total return by investing in energy related MLPs (Master Limited Partnerships) and other industrial transport companies. This fund sponsor is Kayne Anderson Capital Advisors. The fund managers are McCarthy & Frey since 2004. The expense ratio of this fund is 4.94% which include 2.47% of baseline expense and 2.46% of interest expense. This fund is also a leverage fund with 29.69% of effective leverage. It also has a distribution rate of 6.26% per year, this distribution is paid quarterly. The fund also has total net assets of 2.79 billion as of February 2011. As February 16, 2011, the fund market price is currently traded at 12.40% premium from the fund’s Net Asset Value (NAV).

The fund has a total of 62 holdings. The Top 10 holdings in this fund areEnterprise Products Partners LP, Magellan Midstream Partners LP, Kinder Morgan Management llc, Plains All American Pipeline LP, Inergy Holdings LP, MarkWest Energy Partners LP, Williams Partners LP, Energy Transfer Partners LP, Energy Transfer Equity, and Copano Energy Llc. Most of this stock is domestic stocks (86.28% USA).


5. AllianceBernstein Income Fund

AllianceBernstein Income Fund objective is to achieve high current income and capital appreciation by investing in high yielding government and corporate fixed income securities or bonds. The fund sponsor is Alliance Bernstein LP. This AllianceBernstein Income Fund is classified as fixed income fund. The fund is managed by Paul J. DeNoon (2003), Doug Peebles (2003), Gershon Distenfeld (2006), and Kewjin Yuoh (2006). The fund also has total net assets of 3.06 billion as of February 2011. As February 16, 2011, the fund market price is currently traded at -10.85% premiums from the fund’s Net Asset Value (NAV). It also has a distribution rate of 6.26% per year, this distribution is paid monthly. Average Maturity is 9.83 years.

The fund has a total of 383 holdings. The Top 10 holdings in this fund include variety of treasuries with different yields and maturities.Top 5 countries allocation includes USA (85.55%), Russia, Brazil, Columbia and Indonesia. The top 5 sectors are US Treasuries, Investment Grade Corporate bond, High Yield Corporate Bond, Pass through Mortgage bond, and Mortgage Backed Securities (MBS). The current total expense ratio is 0.91% per year (0.69% of baseline expense and 0.21% of interest expense). The fund has returned 3.47% over the past year and 4.50% over the past 3 years.


Disclosure: I have no affiliation with any of these funds. I also have no position in any of these funds. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results.


Top CEF Performance

(click column header to sort results)
Ticker  
Fund Name  
Closing Price  
NAV  
1Y Rtn on Price  
3Y Rtn on Price  
CEF
Central Fund of Canada
$19.38
$17.99
54.42%
16.64%
EXG
EV Tax-Managed Global Fund
$10.83
$11.75
5.54%
0.14%
DNP
DNP Select Income
$9.53
$7.61
15.38%
4.81%
KYN
Kayne Anderson MLP
$30.69
$27.78
41.74%
10.10%
ACG
AllianceBernstein Income Fund
$7.68
$8.64
3.47%
4.50%
EVV
EV Limited Duration Income
$15.87
$16.94
12.26%
10.98%
NUV
Nuveen Municipal Value
$8.96
$9.01
-3.57%
1.79%
FAX
Aberdeen Asia-Pacific Income
$6.76
$7.27
15.99%
11.28%
ETY
EV Tax-Managed Div Equity Inc
$11.47
$12.50
3.50%
1.39%
NFJ
NFJ Div Interest & Premium
$17.89
$19.34
30.33%
-1.34%

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