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   Non-TechCEF Closed End Fund Investing


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From: Kapusta Kid5/6/2012 2:55:47 PM
2 Recommendations   of 57
 
Douglas Albo occasionally posts articles on Seeking Alpha re CEFs. The comments of 'GlobalTrekker' on CEFs are also worth reading. Also, Albo, Greg Group and 'The Simple Accountant' have all written useful articles on the general topic of distributions vs. income and on a CEF's Return of Capital.

I don't think anyone should invest in CEFs, particularly equity CEFs which use options, without first having a solid understanding of Return of Capital and how it might or might not affect a fund's NAV.


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From: brehm2335/14/2012 5:39:07 PM
   of 57
 
Any thoughts on GGN?

I own a few shares, not sure why, except for the distributions. Seems S/A articles like it. Per cef, its not covering distributions, and trades at a premium.

GAMCO Gold & Natural Resources

Another gold related company getting cheaper by the day is Gamco Gold & Natural Resources Income Trust. GGN is a closed end fund which utilizes a covered call strategy on the majority of its portfolio holdings. This strategy generally consists of writing "out of the money call options" for each of the assets owned in the portfolio. The premiums that are collected contribute to the monthly distributions made by GGN.

This particular play on gold, precious metals, commodities, and energy offers an incredible yield of over 11% paid monthly. The payout history is very consistent and stable. GGN also offers a dividend reinvestment plan (DRIP) which allows an investor to purchase shares at a discount to market price under certain conditions.

As of the end of last year the portfolio of GGN included 45% in stocks and fixed income securities of gold and other precious metals mining companies, 43% in stocks and fixed income securities of energy companies, and 12% in stocks and fixed income securities of base metal and other commodity companies.

The current net asset value of GGN is 13.31. It is currently trading at around 14.60. This represents a 10% premium over net asset value. GGN regularly trades at a premium to NAV. I am a bit concerned with the shrinking NAV, but If they can keep leverage down I am comfortable with holding this CEF for the foreseeable future to reap the large monthly payouts.

seekingalpha.com

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To: brehm233 who wrote (20)5/14/2012 6:16:46 PM
From: CusterInvestor
   of 57
 
GGN I've been interested in it for years, but kept getting put off for various reasons, one being that a good portion of dividend is supposedly return of capital--but I never looked deep enough into it to verify.
Would also appreciate more insight.

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To: CusterInvestor who wrote (21)5/18/2012 2:45:57 PM
From: Kapusta Kid
   of 57
 
CEF Connect (which is acting a bit squirrelly as I write) shows NO ROC in GGN's distributions over the last 2 years. But given that the fund uses options (i.e., sells calls on its positions), it wouldn't necessarily be a bad thing if there were ROC. I own some for the dividend. NAV and market price are both declining and I'm looking to possibly add more, but the premium is a bit steep right now: ~10.6%.

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From: brehm2335/25/2012 4:02:24 PM
   of 57
 
Any one getting excited about KOL,

its at a 2 year low? We used to trade it monthly, but with all the polital 'stuff' its done nothing but drop...

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To: LTBH who wrote (16)1/26/2013 5:14:08 AM
From: Crossy
   of 57
 
CEF preferred funds (e.g. FFC etc.)

let me post a pointer to my recent note on FFC regarding NAV premium and a suggestion for rebalancing
http://www.siliconinvestor.com/readmsg.aspx?msgid=28688473

rgrds
CROSSY


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From: abhi998/20/2013 9:15:02 AM
3 Recommendations   of 57
 
Welcome to Mr. Capecod..
All followers of Capecod from Morningstar gather here..

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To: abhi99 who wrote (25)8/20/2013 11:59:23 AM
From: bujia
   of 57
 
I'm on board.
Bujia

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To: abhi99 who wrote (25)8/24/2013 10:23:07 AM
From: SickofWork
   of 57
 
Finding Navigation more difficult here, but at least no blatant censorship from simple disagreement with the Prophets of Morningstar. Ok so I see some names already familiar-hope more of my prior favorites follow.

Bob

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To: abhi99 who wrote (25)8/26/2013 4:21:07 PM
From: SickofWork
   of 57
 
deleted-duplicate

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