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   Non-TechCEF Closed End Fund Investing


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To: brehm233 who wrote (37)12/20/2020 10:40:00 PM
From: the traveler
   of 55
 
thanks. i do it the same way.

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To: brehm233 who wrote (33)12/21/2020 8:25:22 PM
From: the traveler
2 Recommendations   of 55
 
Did some preliminary analysis----Not sure how this will line up.

# (DISC)/
TICKER D FUND NAME PRICE NAV INCP YLD INCP PREM
I 12/18/20 12/18/20 NAV 12/18/20 DATE 12/18/20
S
T
SRV 12 Cushing MLP & Infras Tot Return 22.61 29.27 19.06 6.37% 8/27/2007 (22.75)%
GDV 12 Gabelli Dividend & Income 21.28 24.61 19.06 6.20% 11/28/2003 (13.53)%
GGZ 4 Gabelli Global Small & Mid Cap Value Tru 12.56 15.04 12.00 5.10% 6/23/2014 (16.49)%
GRX 4 Gabelli Healthcare & Wellness Trust 11.78 13.66 8.00 5.09% 6/19/2007 (13.76)%
GAM 1 General American Investors 36.73 43.54 10.00 6.80% 2/1/1927 (15.57)%
RMT 4 PIMCO Energy & Tactical Credit Oppst 10.00 11.69 7.25 6.00% 12/14/1993 (14.46)%
RVT 4 Royce Value Trust 16.23 18.47 10.00 6.16% 11/19/1986 (12.13)%
SOR 4 Source Capital 40.40 44.91 16.00 6.34% 10/24/1968 (10.04)%
HQH 4 Tekla Healthcare Investors 23.28 26.09 10.00 8.25% 4/23/1987 (10.77)%
CEE 1 The Central and Eastern Europe Fund 25.00 29.00 16.74 5.85% 3/6/1990 (13.81)%
INF 4 The India Fund Inc 19.97 22.35 14.02 8.41% 2/23/1994 (10.65)%

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To: the traveler who wrote (41)12/21/2020 8:57:18 PM
From: brehm233
1 Recommendation   of 55
 
Just lets assume the market knows more than i do, so it already has considered, hedgings, quality of issues own, leverage, interest rate swaps,liability of location of issues, etc....
so the distributions rate versus the dis/ premium should tell us something regarding how the perceived market price is determined???
just thoughts, anyone thoughts...tia

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To: Kapusta Kid who wrote (19)3/6/2021 12:46:27 PM
From: Max2.0
   of 55
 
I have about 10 CEFs and about half are Equity CEFs. My position is that ROC is mostly meaningless in itself. The important metric for me is NAV. If it goes up or is constant over time, then all is well. If there is a consistent downward trend over time, then that is a red flag and I will avoid starting a position.

In a CEF with declining asset value, I may look at ROC to analyze/determine if the fund is over distributing (IE: Destructive ROC).

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From: chowder7/2/2021 5:50:57 PM
   of 55
 
Speaking of ROC, not all ROC is destructive.

One of the simplest ways to know if a fund is utilizing destructive or constructive ROC is to watch its NAV. A growing NAV over a period of time indicates that the fund is earning its distribution. An eroding NAV will indicate that they really are merely returning your investment to you, without earning these through unrealized gains or elsewhere. An eroding NAV isn't a sustainable long-term investment and an investor will eventually see distribution cuts.

In a taxable account, ROC with a rising NAV can be beneficial in tax planning.

I'd have to look at the funds to see which ones pay ROC while increasing NAV, but BST is one. BSTZ, EOI, EOS and THQ are just a few I can think of off the top of my head. In fact, I added to THQ today.

The tax benefits from ROC being utilized in a portion of the distribution stems primarily from MLP holdings and option based CEFs. ROC reduces an investor's cost basis on the original share price purchased. This defers taxes for an investor until they sell the shares. When an investor sells the shares, it is then taxed at a capital gains rate, which is also beneficial. If a CEF is held long enough, an investor's cost basis will be reduced to $0. When this occurs any subsequent payment from ROC will be taxed at a capital gains rate.

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From: chowder7/2/2021 5:55:51 PM
   of 55
 
Here are the CEF's I own:

ACV .. AFB .. AIO .. ASG .. BST .. BSTZ .. CSQ .. DNP .. EIM .. ETO .. EVG .. EVN .. EVT .. GOF .. HTD .. KTF .. NIQ .. PDO .. PTY .. RNP .. THQ .. UTF .. UTG.

Today I added to GOF and THQ.

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To: CusterInvestor who wrote (38)7/20/2021 3:47:16 PM
From: the traveler
1 Recommendation   of 55
 
I have started something similar to your screens--see below

I would like to throw this out there to anyone interested that might have the resources to have some back testing capabilities. I have often read about studies indicating owning CEF's with discounts being a good strategy for total return etc.



So back in late June of this year I set up the criterion listed below and started screening in cefconnect.com--the plan was to screen weekly or monthly, or both, and stay invested in the top five funds that continue to meet the criterion. My problem is I have no back testing capabilities to gain confidence in the model or know to abandon it ASAP--LOL. It would be super interesting to know the record on this simple procedure over say the last 15-25 years or thereabouts.



Anyway the screening criterion is as follows:



I started by running the screen based on Fridays closing numbers--eg. weekly. Select the top 5 funds with the largest discounts to NAV that also pay a monthly dividend greater than xx% per annum. ( I arbitrarily set it at 7% when I started)



Buy equal monetary amounts of each of the five and stay invested until one or more drops out of the top 5--sell the drop outs at the open on the following Monday and replace them at the same time with the funds that took there place in the top 5 list.



That's it!

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To: the traveler who wrote (46)7/20/2021 4:59:54 PM
From: chowder
   of 55
 
Do you have a list of names your screen came up with?

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To: chowder who wrote (47)7/20/2021 8:39:23 PM
From: the traveler
1 Recommendation   of 55
 
Yes they are listed below. No change in the top 5 on a weekly screen so far. Also no changes through yesterdays close.

DISC /
DIST PREM YIELD PRICE
TICKER >=7% 06/23/21 06/23/21 06/23/21
HFRO Monthly (27.90)% 9.29% 9.95
HGLB Monthly (23.71)% 9.46% 9.01
SPE Monthly (16.69)% 7.44% 15.17
VCIF Monthly (9.44)% 8.78% 10.74
FPL Monthly (8.97)% 7.51% 5.99
EST. YIELD 8.4960%

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To: the traveler who wrote (48)7/21/2021 2:13:54 PM
From: chowder
1 Recommendation   of 55
 
Thanks for sharing. The only one I had on my list is SPE but I have been adding to BST this week.

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