2024 Closed end fund discounts - Closed-End Fund: A closed-end fund is organized as a publicly traded investment company by the Securities and Exchange Commission (SEC). Like a mutual fund, a closed-end fund is a pooled ...

 
Alexander Halliday. Closed-end funds (CEFs) present a unique opportunity to study finance in that the price of shares rarely matches the net value of the underlying holdings. This study investigates this phenomenon and how behavioral finance influences the discount. The study uses time-series regression analysis to examine the CNN Fear and .... Closed end fund discounts

Keywords: closed-end fund discount economic policy uncertainty ARDL 1. Introduction A closed-end fund is an investment vehicle that raises capital by issuing a fixed num-ber of shares that are traded in the secondary market, which investors buy and sell like any stock depending on the market value of the underlying investments of the fund.Premiums & Discounts. Unlike Open-End Funds which are bought and sold over-the-counter, exchange-traded Closed-End Funds (“CEF”) are listed on an exchange (such as the NYSE or NASDAQ) and therefore they have two prices: a NAV, like Open-End Funds, that values the assets less liabilities on a per share basis, and a Market Price at which the ...The S&P 500 pays 1.7%. The 10-year Treasury yields two points more at 3.7%. That’s better—but it ain’t 11.8%! The same million-dollar retirement portfolio can either generate $17,000 ...Call (804) 288-2482 / (800) 356-3508 or EMail: [email protected]. CEFData.com is the premium web-based extension of CEF Advisors’ CEF Universe project. We currently collect and produce 281 data points for US listed traditional closed-end funds and 208 data points for Business Development Companies (BDCs). Our current offering is weekly ...These preferences create two inefficiencies in CEFs: 1. Low yielding funds often have higher discounts than higher yielding funds, even if the lower yielding fund has a better NAV performance and ...Summary of Average Premium & Discount November 24, 2023 Average Premium & Discount by Fund ClassificationShares of closed-end funds frequently trade at a market price that is a discount to their NAV. Closed-end funds are subject to management fees and other expenses. The Closed-End Fund Screener may include closed-end funds not registered under the Investment Company Act of 1940. 626413.4.0Jan 11, 2023 · The managers of closed-end funds may take various measures in an attempt to reduce those discounts. Of course, these measures must be approved by the fund’s Board of Directors as consistent with ... Apr 30, 2023 · On April 22nd, 2022, the average discount of all CEFs came to -5.74%. That's when we did our previous update. That was a move wider from the -2.51% average discount that funds showed on December ... Examples of closed syllable words include “men,” “cap” and “sit.” Some words contain two closed syllables, such as “absent,” “contest” and “fabric.” A closed syllable word itself is any word in which the spelling ends with a vowel followed ...Oct 31, 2023 · Discovering value with discounted CEFs. 31 Oct 2023. Across most asset classes, current closed-end fund discounts appear wide relative to short- and long-term averages. This may present an opportunity for long-term investors. Closed-end funds purchased at discounts wider than their historical average have the potential to reward investors with ... Nov 1, 2023 · There are more than 600 closed-end funds on the market, according to the Closed-End Fund Association, the industry’s trade body. Many invest in municipal bonds for higher-income investors ... Aug 24, 2021 · When looking at closed-end funds, starting with the discount or premium of the fund is an important place to start. ... We also offer managed closed-end fund (CEF) and exchange-traded fund (ETF ... Fund A is a mutual fund and Fund B is a closed-end fund selling at a 20% discount to NAV ($8 per share). (A discount of 20% is used in this example to dramatize the impact of the discount over a long period of time and is not meant to be illustrative of typical discount rates.) A hypothetical investment of $10,000 in Fund A buys 1,000 shares. We examine how short sale constraints on portfolio holdings affect closed-end fund (CEF) discounts and thereby distinguish behavioral-based explanations from fundamental-based explanations of the discounts. Using Regulation SHO as a natural experiment that relaxes short-sale constraints on pilot stocks, we find that discounts of …A closed-end fund’s premium/discount valuation is calculated as market price minus NAV, divided by NAV. Market price is the price at which a fund trades on an exchange. Shareholders purchase and sell closed-end funds at the market price, not NAV. There can be no assurance that any closed-end fund will achieve its investment objective(s).Z-Score is a valuation metric that is commonly used for closed-end funds. For those unfamiliar with it, it is a measure of a fund's discount in standard deviation terms i.e. a z-score of -1 means ...21 Oct 2017 ... Why Do Closed-End Funds Trade At Discounts Or Premiums To Their Net Asset Values? ... The concept of a portfolio arose out of the desire to ...Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Summary of Average Premium & Discount November 24, 2023 Average Premium & Discount by Fund ClassificationThe pricing dynamics of closed-end funds are unique. While open-end funds always trade at their net asset value (NAV), closed-end funds can trade at a premium or discount to their NAV.Fund A is a mutual fund and Fund B is a closed-end fund selling at a 20% discount to NAV ($8 per share). (A discount of 20% is used in this example to dramatize the impact of the discount over a long period of time and is not meant to be illustrative of typical discount rates.) A hypothetical investment of $10,000 in Fund A buys 1,000 shares.These Closed-End Funds Are on Sale for the Holidays. By Randall W. Forsyth. Updated Dec 16, 2021, 1:10 pm EST / Original Dec 15, 2021, 6:00 am ESTDec 1, 2023 · At the end of October, closed-end fund discounts were about as big as they had ever been, especially in municipal bond funds, which reached an average 14.5% discount and are still at around 12%. The reason that closed-end funds are popular among retail investors is that they usually have high dividend/distribution yields of 5%-10%. However, it is ...The top three CEF providers in the fund of closed-end funds are Nuveen (20% of assets), Pimco (18%) and Franklin-Templeton (10%). YYY has a high total expense ratio of 2.72%. However, 2.22% of the ...Closed-end fund potential distribution sources include net investment income, realized gains, and return of capital. Some income from "Tax-Free Income" funds may be subject to state and local taxes and the alternative minimum tax. Capital gains, if any, will be subject to capital gains tax. NAV returns are net of expenses, and assume ...But during these periods, the discounts for CEFs tend to widen. Buying a fund at a historically wide discount provides another source of return for investors. If markets continue to fall throughout this year, which we view as a distinct possibility, compelling opportunities to buy closed-end funds at a discount could present themselves. Are you a fan of Lands’ End and looking to explore their products in person? If you’re wondering, “Is there a Lands’ End store close to me?” you’ve come to the right place. The first step in finding a Lands’ End store near you is to visit t...It is well-known that the level of closed-end fund discounts appears to predict the corresponding fund's future returns. We further document that such predictability decays slowly. The popular explanations, including the tax effect, investor sentiment risk, and the funds's dividend yield, do not fully account for the observed predictability.The fact that a closed-end fund trades on the open market results in a fund's market price moving independently of a fund's net asset value. If the price is lower than net asset value, the fund is said to be trading at a discount; if it trades at a price higher than net asset value, the fund is said to trade at a premium.Premiums and …Empirical support for the hypothesis that closed-end fund discounts are related to overhanging tax liabilities has been mixed. We test this hypothesis using a new approach that examines changes in discount levels following distributions of dividends and capital gain. Since such distributions reduce future shareholder tax liabilities, the tax ...A closed-end fund usually trades at a premium or discount to the market value of its assets (known as net asset value, or NAV). [1] : 340–341 In contrast, the price of an open …mon variation in small firm and closed-end fund prices, it remains unclear whether this variation is due to economic fundamentals or investor sentiment. In this article, we cast discounts on closed-end funds in a time varying expected return framework and show that the Lee, Shleifer, and Thaler results are just one facet of the relationShares of closed-end funds frequently trade at a market price that is a discount to their NAV. Closed-end funds are subject to management fees and other expenses. Closed-end funds share some traits with mutual funds and ETFs, but there are a number of differences that set them apart. Learn what makes them unique here.Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Unlevered municipal bond closed-end funds traded at a discount to their net asset value of as much as roughly 12%, according to data compiled by Bloomberg. The biggest, Nuveen LLC’s $1.9 billion ...First Trust Energy Infrastructure Fund ( FIF) FIF is primarily an equity only closed end fund with about 40% exposure to utilities. It is currently trading at a discount of 10.42% and yields a 7. ...Because closed-end funds trade on a public exchange, the price of the units will be determined by the market. As such, at any point in time the price may trade at either a premium or discount to ...A closed-end fund (CEF) or closed-ended fund is a collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. Unlike open-end funds, new shares in a closed-end fund are not created by managers to meet demand from investors. Instead, the shares can be purchased and sold only in the market, which ...This article examines whether deviations from fundamental value or closed-end country fund's discounts or premiums forecast future share price returns or net asset returns.,The main empirical (econometric) tool is a vector autoregressive (VAR) model. The authors model share price returns and net asset returns as a function of their …December 1, 2023 at 4:30 PM · 4 min read. NEW YORK, Dec. 01, 2023 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end …The managers of closed-end funds may take various measures in an attempt to reduce those discounts. Of course, these measures must be approved by the fund’s Board of Directors as consistent with ...Car insurance is a necessity if you own a vehicle. Insuring your car is required by law in every state. Plus, your policy offers you some financial protection if you end up in an accident, your vehicle is stolen, or other specific incidents...Typically closed‐end funds begin trading at a premium, but within a few months begin to trade persistently at a discount. The closed‐end puzzle illustrates opaque framing, heuristic‐driven bias, and an inefficient market—in short, all three themes in behavioral finance. Discount Distribution Rate ... CEFConnect.com makes data for the universe of closed-end funds available as a courtesy to its users. CEFConnect.com data are supplied by the service provider, Morningstar. For certain data points, Morningstar uses publicly-available sources such as the Fund’s annual or semi-annual report, public announcements ...If there’s one thing we need to remember when we buy high-yield closed-end funds ( CEFs ), it’s this: always demand a discount. Well, make that two: always demand a high dividend! Because...The current yield is very attractive as well, at 8.0%. The past performance over the past three to ten years is decent enough, between 9% to 10%. BME: BlackRock Health Sciences fund is the pick ...Shares of closed-end funds frequently trade at a market price that is below their net asset value. This is commonly referred to as trading at a discount. This ...Barron's looked at some closed-end funds, or CEFs, that had their initial public offering this year from big, brand-name asset managers. All of their shares have since traded lower, to discounts ...Mar 25, 2023 · We believe, for most investors, a 20%-25% allocation to closed-end and high-income funds should be enough. Last year, most funds lost value in sync with the broader market. Jul 9, 2023 – 8.00pm. If the period from 2015 to 2020 was the party for fund managers and brokers that delivered $15 billion of closed-end funds to the Australian sharemarket, we are now well ...In this case, the closed-end fund sells at a discount of $2 per share. On a percentage basis, the fund sells at a discount of 10% ($2 divided by $20). If the market price is above NAV, say $21 in this case, then the closed-end fund sells at a premium of 5%.” For a variety of reasons, many closed-end funds trade at a discount to NAV.Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Closed-end fund shares may sometimes trade at a discount, but may sometimes sell at a premium. What this means for you: Trading at market price means you may ...Matisse and Closed-End Funds. A quantitative focus on CEFs—and an approach that supplements using a traditional analytical framework with a deep analysis of CEF discounts to make allocation decisions—is what we believe is our strength and competitive advantage compared to other investment managers. Our analysis, commentaries, and insights ...Jan 29, 2021 · Because closed-end funds trade on a public exchange, the price of the units will be determined by the market. As such, at any point in time the price may trade at either a premium or discount to ... Opportunity to Buy at a Discount— When closed-end funds can be bought at a discount to net asset value, investors are buying a dollar’s worth of assets for less than a dollar. This can be attractive for two reasons: • In income-oriented funds, the yield will be higher when calculated on actual dollars invested at a discount, compared to NAV.At the end of October, closed-end fund discounts were about as big as they had ever been, especially in municipal bond funds, which reached an average 14.5% discount and are still at around 12%.Call (804) 288-2482 / (800) 356-3508 or EMail: [email protected]. CEFData.com is the premium web-based extension of CEF Advisors’ CEF Universe project. We currently collect and produce 281 data points for US listed traditional closed-end funds and 208 data points for Business Development Companies (BDCs). Our current offering is weekly ... Closed-end funds trading at a discount to their liquidating value look like screaming buys. A few are. Most of them are best avoided. A closed-end investment …Overall, our results greatly deepen the closed-end fund discount puzzle and pose a challenge to the market efficiency in these products. The remainder of this paper is organized as follows. Section I presents the empirical methodology used to extract the information conten t of CEF discounts. Section II discusses the data.According to BlackRock, the median closed-end fund is now trading at a discount of 10.7% compared to a 5-year median discount of 7.4%. Given the relatively liquid nature of AGD's holdings, it ...Closed-end fund (CEF) shares typically trade at discounts to NAV, although, occasionally, at premiums. This disparity between NAV and price has been the subject ...A closed-end fund is a type of mutual fund that issues a fixed number of shares through a single initial public offering (IPO) to raise capital for its initial …the fund may a candidate for a sale. The investor can then move on to another well run fund with a large discount Closed End Funds Sometimes Convert to Open End Closed end funds are potential targets for certain large investors who may buy a sufficient stake to influence the fund’s management.Oct 31, 2023 · Discovering value with discounted CEFs. 31 Oct 2023. Across most asset classes, current closed-end fund discounts appear wide relative to short- and long-term averages. This may present an opportunity for long-term investors. Closed-end funds purchased at discounts wider than their historical average have the potential to reward investors with ... To some extent, closed-end fund discount is a forward-looking measure that is comparable to Tobin’s Q used as the performance measure in studies on the relation between insider ownership and firm performance in industrial corporations. Although discounts are not entirely determined by factors under directors’ control, whatever those …There are more than 600 closed-end funds on the market, according to the Closed-End Fund Association, the industry’s trade body. Many invest in municipal bonds for higher-income investors ...The fund manager obtains utility solely from the consumption, , of fees earned from managing the closed-end fund plus any issue premium, ρ. The manager collects a fee, , each period and consumes (4) at . The management contract is exogenous and pays the manager a fixed amount, a, plus a fraction, b, of the fund’s NAV return each period.Closed-end funds trading at a discount to their liquidating value look like screaming buys. A few are. Most of them are best avoided. A closed-end investment …In case closed-end funds are terminated, merged with another fund or converted into open-ended form, their prices rise and their discounts tend to shrink (Flynn, 2012). 5. The closed-end fund puzzle refers to how the deviations of closed-end funds’ market value from their NAV run counter to various notions of neoclassical finance.Shares of closed-end funds (CEFs) and business development companies (BDCs) are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds and business development companies frequently trade at a discount to their net asset value.10 Best Closed-End Funds (CEFs) to Buy Now. The best closed-end funds will significantly boost your portfolio income and allow you to buy their underlying stocks and bonds at a...Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Closed-end funds trading at a discount to their liquidating value look like screaming buys. A few are. Most of them are best avoided. A closed-end investment company is a peculiar beast. Unlike ...The funds are closed-end investment products. Common shares of the funds are only available for purchase/sale on the NYSE at the current market price. …This paper shows that the existence of managerial ability, combined with the labor contract prevalent in the industry, implies that the closed-end fund discount should exhibit many of the primary features documented in the literature.A closed-end fund, or CEF, is an investment company that is managed by an investment firm. Closed-end funds raise a certain amount of money through an initial public offering, or IPO, after which ...The figure plots the mean discount of the funds that open-end measured relative to the mean discount of the entire closed-end fund industry. Source: Minio-Paluello (1998) relative to the mean ...On a percentage basis, the fund sells at a discount of 10% ($2 divided by $20). If the market price is above NAV, say $21 in this case, then the closed-end fund ...When looking at closed-end funds, starting with the discount or premium of the fund is an important place to start. ... We also offer managed closed-end fund (CEF) and exchange-traded fund (ETF ...Meaning of closed-end fund. What does closed-end fund mean? Information and translations of closed-end fund in the most comprehensive dictionary definitions …The top three CEF providers in the fund of closed-end funds are Nuveen (20% of assets), Pimco (18%) and Franklin-Templeton (10%). YYY has a high total expense ratio of 2.72%. However, 2.22% of the ...4 Jan 2014 ... Closed-end fund (CEF) data are commonly used to derive discounts for lack of control (DLOC) for closely held holding companies invested in.If you’re a fan of Lands’ End and looking to visit one of their stores, you might be wondering, “Is there a Lands’ End store close to me?” Luckily, we’ve got you covered. In this article, we’ll provide you with the ultimate list of Lands’ E...Dec 31, 2003 · Summary of Average Premium & Discount November 24, 2023 Average Premium & Discount by Fund Classification Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Aug 24, 2021 · When looking at closed-end funds, starting with the discount or premium of the fund is an important place to start. ... We also offer managed closed-end fund (CEF) and exchange-traded fund (ETF ... This paper examines the proposition that fluctuations in discounts on closed end funds are driven by changes in individual investor sentiment toward closed end funds and other securities. The theory implies that discounts on various funds must move together, that new funds get started when seasoned funds sell at a premium or a small …Don’t sound the alarm bells yet! Because BSTZ’s 12.1% yield is based on its (discounted) market price. And the fund’s 12% discount means that, based on per-share NAV, BSTZ’s yield on NAV ...Closed end fund discounts

First Trust Senior Vice President and Closed-End Fund Analyst Jeff Margolin spoke with CEF Insights about the current closed-end fund environment, discounts, and potential opportunities for investors going into 2024. Watch the video here. View all Interviews & Analysis. Investment Updates.. Closed end fund discounts

closed end fund discounts

For November, the median discount of all CEFs widened nine basis points (bps) to 2.40%—still narrower than the 12-month moving average median discount (3.69%). In this report, we highlight November 2021 CEF performance trends, premiums and discounts, and corporate actions and events. For the second month in three, equity …1. Introduction. The pricing of closed-end funds (CEFs) is an important topic in finance because this is one case where a company׳s fundamentals are directly observable (Ross, 2002) and accurately valued. 1 CEFs have predominantly been priced at a discount to net asset value (NAV), an observation that seemingly runs counter to the …Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Because closed-end funds trade on a public exchange, the price of the units will be determined by the market. As such, at any point in time the price may trade at either a premium or discount to ...Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.It is well-known that the level of closed-end fund discounts appears to predict the corresponding fund's future returns. We further document that such predictability decays slowly. The popular explanations, including the tax effect, investor sentiment risk, and the funds's dividend yield, do not fully account for the observed predictability.The closed-end fund industry may wish to encourage the SEC to enforce the important protections Section 17(d) and Rule 17d-1 provide to the vast and diverse base of middle-class investors holding the bulk of closed-end fund equity securities, or to, at a minimum, engage in a rulemaking addressing appropriate conditions under which activist ...14 Sept 2023 ... Big news about a small closed-end fund. In March (see below) I made my first CEF rec on Twitter: CTF-U, at a -30% discount to NAV.A closed-end fund is a special kind of investment company that has its exit door locked. Once capital is inside, it can’t leave. ... At the same 20% discount your fund shares are now worth ...Closed-end fund (“CEF”) valuations are cyclical in nature with fluctuations in premium or discount driven by several factors, including, but not limited to, investor and market …Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Listed CEFs can offer intra-day liquidity. The term feature ensures NAV liquidity upon maturity. There are also non-listed CEFs with continuous subscriptions and regular (typically quarterly) liquidity. *Restricted and Illiquid Investments Risk. Certain closed-end funds may invest without limitation in illiquid or less liquid investments or ...On April 22nd, 2022, the average discount of all CEFs came to -5.74%. That's when we did our previous update. That was a move wider from the -2.51% average discount that funds showed on December ...For instance, a closed-end fund trading at a 15% discount to NAV offers investors a chance to buy $1 worth of assets for 85 cents. The nuance with closed-end funds is that …Unlevered municipal bond closed-end funds traded at a discount to their net asset value of as much 12.6%, according to data compiled by Bloomberg. The biggest, Nuveen LLC’s $1.9 billion ...Closed-end fund ETFs can give investor a diversified access to the closed-end fund universe and its special features like the possibility of trading with a premium or a discount to NAV and the use ...The funds are closed-end investment products. Common shares of the funds are only available for purchase/sale on the NYSE at the current market price. …These preferences create two inefficiencies in CEFs: 1. Low yielding funds often have higher discounts than higher yielding funds, even if the lower yielding fund has a better NAV performance and ...Closed-end fund historical distribution sources have included net investment income, realized gains, and return of capital. For more detailed information on the distributions of a specific Fund, please visit the Fund sponsor's website. CEFConnect.com makes data for the universe of closed-end funds available as a courtesy to its users.Discount The share price of a closed-end fund is, like that of any listed company, determined by supply and demand for its shares. As such, a fund’s share price can diverge from its net asset ...The top three CEF providers in the fund of closed-end funds are Nuveen (20% of assets), Pimco (18%) and Franklin-Templeton (10%). YYY has a high total expense ratio of 2.72%. However, 2.22% of the ...22 Jan 2013 ... ... play this video. Learn more. In character. Open App. Open-End and Closed-End Mutual Funds. 116K views · 10 years ago ...more. Khan Academy. 8.17 ...Following prior literature (e.g., Bodurtha et al., 1995), for each fund quarter, we define the quarterly fund discount (premium) as the average of the three monthly fund discounts (premiums) over the quarter. 8 Specifically, we calculate the monthly closed-end fund discount (premium) using closing fund prices (Price) and NAVs:Data were taken from the close of March 18, 2023. 1. Top 10 widest "high-high-low" discounts. The following data show the 10 CEFs with the widest discounts, yield >6.5% and coverage >85%. Z-scores ...The NAV of a closed-end fund is calculated by subtracting the fund’s liabilities (e.g., fund expenses) from the current market value of its assets and dividing by the total number of shares outstanding. The NAV changes as the total value of the underlying portfolio securities rises or falls, or the fund’s liabilities change.Managing the Discount and Changing Perspectives on the Return of Capital. As activist engagement has increased, the industry has increased focus on the methods listed closed-end fund advisers have to reduce the discount between a closed-end fund’s trading price and its net asset value. This panel will discuss discounts and why they exist.The Weekly Closed-End Fund Roundup will be put out at the start of each week to summarize recent price movements in closed ... (+1.18%), while the sector with the widest discount is MLPs (-14.29% ...One muni closed-end fund that is worth a closer look by investors is the BlackRock Municipal 2030 Target Term Trust (BTT), trading around $19.30 with a 13% …On April 22nd, 2022, the average discount of all CEFs came to -5.74%. That's when we did our previous update. That was a move wider from the -2.51% average discount that funds showed on December ...The writers were puzzled by the demand for closed-end funds and were quick to point out the superior performance that fund managers would have to achieve in order to justify the lofty premiums. Keywords. Small Firm; Excess Return; Institutional Ownership; Investor Sentiment; Noise Trader; These keywords were added by machine and not by the authors.Nov 1, 2023 · There are more than 600 closed-end funds on the market, according to the Closed-End Fund Association, the industry’s trade body. Many invest in municipal bonds for higher-income investors ... This paper shows that the existence of managerial ability, combined with the labor contract prevalent in the industry, implies that the closed-end fund discount should exhibit many of the primary features documented in the literature.About CEFA. The Closed-End Fund Association (CEFA) is the national trade association representing the closed-end fund industry. A not-for-profit association, CEFA is committed to educating investors about the many benefits of these unique investment products and to providing a resource for information about its members and their offerings.22 Oct 2015 ... Hence, the mere fact that a CEF is trading at a discount to its NAV does not indicate that it is a bargain nor does a CEF trading at a premium ...At the end of October, closed-end fund discounts were about as big as they had ever been, especially in municipal bond funds, which reached an average 14.5% …Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectives will be achieved. Closed-end funds frequently trade at a discount to their net asset value. NAV returns are net of fund expenses, and assume reinvestment of distributions.Sep 30, 2023 · One muni closed-end fund that is worth a closer look by investors is the BlackRock Municipal 2030 Target Term Trust (BTT), trading around $19.30 with a 13% discount to net asset value. One muni closed-end fund that is worth a closer look by investors is the BlackRock Municipal 2030 Target Term Trust (BTT), trading around $19.30 with a 13% …The reason that closed-end funds are popular among retail investors is that they usually have high dividend/distribution yields of 5%-10%. However, it is ...3D red text big sale on white background with reflection. getty. One thing we love about closed-end funds (beyond the dividends: many CEFs yield 7%+ today) is the big discounts to net asset value ...Growth of $10k. Average Annual Total Return %. Premium/Discount History. * 1 YR Lipper Average not available for this fund. Click to add a fund. Click to remove a fund. Today's Fund Leaders. 1 day as of. Market Return.On April 22nd, 2022, the average discount of all CEFs came to -5.74%. That's when we did our previous update. That was a move wider from the -2.51% average discount that funds showed on December ...Discount volatility: The discount of closed-end funds is a good measure of the ‘fear-level’ in the market, widening out in times of trouble as investors run for the exit, and narrowing in bull ...10 Sept 2018 ... the hypothesis that closed-end mutual fund discounts from fund net asset values reflect small investor sentiment. Because nine-eleven was a ...Yields are up—our CEF Insider portfolio yields an average of 10.2% today—and we’re in a good position to book longer-term profits due to the big discounts …Dec 1, 2023 4:30pm EST. NEW YORK, Dec. 01, 2023 (GLOBE NEWSWIRE) -- Guggenheim Investments today announced that certain closed-end funds have …A closed-end fund, or CEF, is an investment company that is managed by an investment firm. Closed-end funds raise a certain amount of money through an initial public offering, or IPO, after which ...According to BlackRock, the median closed-end fund is now trading at a discount of 10.7% compared to a 5-year median discount of 7.4%. Given the relatively liquid nature of AGD's holdings, it ...May 9, 2022 · Premium/Discounts Of Closed-End Funds. As of the market close on April 22nd, 2022, CEFs are sitting at an average discount of -5.74%. Below are the ten funds with the deepest discounts—all data ... Potential buying opportunities typically arise when closed-end fund discounts reach the long-term average. However, a particularly attractive total return opportunity has historically emerged when ...About CEFA. The Closed-End Fund Association (CEFA) is the national trade association representing the closed-end fund industry. A not-for-profit association, CEFA is committed to educating investors about the many benefits of these unique investment products and to providing a resource for information about its members and their offerings.And many discounts are much bigger than the average: About $121 billion of closed-end funds are trading at 15% below their asset value or more, Saba’s Weinstein said at a conference last month.Apr 30, 2023 · On April 22nd, 2022, the average discount of all CEFs came to -5.74%. That's when we did our previous update. That was a move wider from the -2.51% average discount that funds showed on December ... When looking at closed-end funds, starting with the discount or premium of the fund is an important place to start. ... We also offer managed closed-end fund (CEF) and exchange-traded fund (ETF ...Summary statistics on blockholdings and discounts on closed-end funds are reported in table 1. The data are reported separately for funds with and without friendly blockholders. For the entire sample, funds with blockholders have an average discount of 14.2%. Funds without blockholders, in contrast, have an average discount of only 4.1 %.Management: ETFs are mostly passive, so they incur few trading fees. CEFs have higher trading costs, because the frequency of purchases and sales is greater. Taxes: If an ETF investor wishes to ...The advantage (of buying a CEF at a discount to NAV) can continue to reward investors for many years. Fund A is a mutual fund and Fund B is a closed-end fund selling at a 20% discount to NAV ($8 per share). The study started with a $10,000 investment in each fund and assumed that both funds return identical performance over …Nov 28, 2023 · Summary. John Hancock Premium Dividend Fund cut its distribution earlier this year, leading to a sell-off, but the discount/premiums of closed-end funds can be exploited by investors. These preferences create two inefficiencies in CEFs: 1. Low yielding funds often have higher discounts than higher yielding funds, even if the lower yielding fund has a better NAV performance and ...Data were taken from the close of March 18, 2023. 1. Top 10 widest "high-high-low" discounts. The following data show the 10 CEFs with the widest discounts, yield >6.5% and coverage >85%. Z-scores ...MDFIX is an open-end fund of funds that invests into discounted closed-end funds. We restrict the potential investment universe of MDFIX to CEFs that invest in fixed income securities. More specifically, we target fixed income CEFs that (1) trade at significant discounts to their NAV and (2) pay regular periodic cash distributions.Obviously I mentioned earlier that the closed-end fund structure is the best way for us to execute on the strategy and manage the strategy. It does give ...Call (804) 288-2482 / (800) 356-3508 or EMail: [email protected]. CEFData.com is the premium web-based extension of CEF Advisors’ CEF Universe project. We currently collect and produce 281 data points for US listed traditional closed-end funds and 208 data points for Business Development Companies (BDCs). Our current offering is weekly ...Nov 1, 2023 · There are more than 600 closed-end funds on the market, according to the Closed-End Fund Association, the industry’s trade body. Many invest in municipal bonds for higher-income investors ... The abrdn Total Dynamic Dividend fund is another CEF that caught Read's eye. With a 15.2% discount to NAV and 7.5% distribution rate, this one is hard to resist. It also has a reasonable expense ...Z-Score is a valuation metric that is commonly used for closed-end funds. For those unfamiliar with it, it is a measure of a fund's discount in standard deviation terms i.e. a z-score of -1 means ...Closed-end fund historical distribution sources have included net investment income, realized gains, and return of capital. For more detailed information on the distributions of a specific Fund, please visit the Fund sponsor's website. CEFConnect.com makes data for the universe of closed-end funds available as a courtesy to its users. closed-end fund pricing data. i. nTroducTion. Closed-end fund pricing has been regarded as one of the unsolved mysteries of finance. 1. Often overlooked, closed-end funds are charac-terized by share price deviation from a fund’s net asset value (NAV). Pricing deviations from NAV are labeled as discounts and premiums, and the ratio-Closed-end funds trading at a discount to their liquidating value look like screaming buys. A few are. Most of them are best avoided. A closed-end investment company is a peculiar beast. Unlike ...Why Closed End Funds Trade At A Discount And Premiums . Closed-end funds are a type of investment vehicle traded on the stock market, like stocks. One of the unique characteristics of closed-end funds is that their shares can trade at a premium or discount to the fund’s net asset value (NAV). The NAV is the value of the fund’s …Fund A is a mutual fund and Fund B is a closed-end fund selling at a 20% discount to NAV ($8 per share). (A discount of 20% is used in this example to dramatize the impact …This fund closed at a premium of 3.69% based on the share price of $9.27 and NAV of $8.94. Again, looking at the closing data of 2/2/2022. This time, if it was reinvestment day for the ...In case closed-end funds are terminated, merged with another fund or converted into open-ended form, their prices rise and their discounts tend to shrink (Flynn, 2012). 5. The closed-end fund puzzle refers to how the deviations of closed-end funds’ market value from their NAV run counter to various notions of neoclassical finance.Data were taken from the close of May 30th, 2023. 1. Top 10 widest quality discounts. The following data show the 10 CEFs with the highest discounts and coverage >100%. Yields, z-scores and ...24 Mar 2020 ... As of Friday, the NAV discounts were much larger than average in all CEF groups. For example, the average discount for international equity CEFs ...A: Over the past 10 years, the average discount for closed-end funds has been 4.4%, according to Morningstar. That means investors can buy a share for 4.4% less than value of the underlying ...July 25, 2023 at 2:40 PM · 4 min read. Open-end and closed-end funds have a lot in common. They both typically exist as mutual funds, are professionally managed and can be used to build ...Discount/Premium: This represents the percentage by which the fund's market price exceeds or is less than its NAV. ... weekly, monthly, quarterly, semi-annually or annually. Exchange Ticker: The unique identifier assigned to each closed-end fund for reference and quote data from the stock exchange on which it trades.. China life insurance