Further gains ahead for these closed-ends

Around the world, governments have increased spending in a bid to counter the recession. These efforts are now starting to show results. Global economic growth is resuming, and top-quality foreign stocks have rebounded.

Here are four closed-end funds that trade on the New York exchange at discounts to their net asset values. All four funds have risen lately, but we still see them as buys.

SWISS HELVETIA FUND $11.09 (New York symbol SWZ; Shares outstanding: 32.5 million; Market cap: $360.4 million; CWA Rating: Conservative) mainly invests in large-capitalization Swiss stocks. Hottinger Group, which dates back to 1786, manages the fund.

The Swiss government moved quickly to restore confidence in the country’s banking system. It’s also keeping interest rates low to ease credit and devalue the Swiss franc. The Swiss economy is heavily reliant on exports, so a rise in world trade will greatly benefit the country’s industries.

The $401.7-million Swiss Helvetia Fund’s top holdings are: Nestle SA (food and beverages), 19.4%; Roche Holdings (pharmaceuticals), 12.7%; Novartis (health care and pharmaceuticals), 7.7%; UBS AG (banking), 4.0%; Basilea Pharmaceutica (biopharmaceuticals), 3.9%; Holcim Ltd. (cement), 3.7%; Credit Suisse (financial services), 3.6%; Alpiq Holding (electric power), 3.4%; Addex Pharmaceuticals, 3.3%; and Adecco (personnel staffing), 3.3%.

The fund holds stocks in the following major industries: pharmaceuticals, 25.0%; food and beverages, 21.0%; biotech, 10.9%; utility suppliers, 7.4% construction and materials, 3.0%; industrial goods and services, 2.6%; chemicals, 2.1%; technology, 1.9%; and retailers, 1.4%.

Swiss Helvetia Fund is up 43.1% since its March 2009 low of $7.75. The fund sells for a 14.3% discount to the value of its assets. Its MER is 1.10%.

Swiss Helvetia Fund is a buy.

SINGAPORE FUND $11.65 (New York symbol SGF; Shares outstanding: 9.5 million; Market cap: $110.7 million; CWA Rating: Aggressive) is fully invested in Singapore-based stocks. The Development Bank of Singapore manages the fund.

Singapore relies on exports for much of its growth. Major markets, like the U.S., China and Japan, are important to its economy. As these markets recover, Singapore’s prospects should improve.

The $106.5-million Singapore Fund’s top holdings are: Singapore Telecom, 12.8%; United Overseas Bank, 9.8%; Overseas-Chinese Banking, 8.8%; Jardine Matheson (various industries), 5.2%; Hong Kong Land Holdings (property), 4.9%; Singapore Exchange (Singapore stock exchange), 4.4%; Wilmar International (agribusiness), 4.2%; Keppel (various industries), 3.7%; Capitaland (property), 3.6%; and City Developments (property), 3.5%.

The fund holds stocks in the following major industries: property development, 18.9%; banks, 18.6%; telecommunications, 12.8%; shipyards, 6.6%; food, beverages and tobacco, 5.4%; conglomerates, 5.2%; electrical products and computers, 5.0%; diversified financial, 4.4%; health and personal care, 4.2%; and communications and media, 3.1%.

Singapore Fund is up 105.8% since its March 2009 low of $5.66. The fund sells for 11.4% less than the value of its assets. Its MER is 1.82%.

Singapore Fund is a buy.

INDIA FUND $26.02 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $1.0 billion; CWA Rating: Aggressive) mainly invests in large-cap Indian stocks. Blackstone Group manages the fund.

India’s economy has grown by more than 9% annually over the last few years. The global recession has hurt the country’s growth, but it could still expand by as much as 6% this year.

The $1.1-billion India Fund’s top holdings are: Reliance Industries (conglomerate), 9.9%; Infosys Technologies (software), 9.1%; Bharti AirTel (telecom), 4.7%; Housing Development Finance, 4.0%; Oil & Natural Gas Corporation, 3.0%; HDFC Bank, 2.7%; Bharat Heavy Electricals (engineering and manufacturing), 2.7%; Jindal Steel & Power, 2.7%; ICICI Bank, 2.6%; and State Bank of India, 2.3%.

India Fund holds stocks in the following major industries: finance, 21.1%; industrial, 16.4%; energy, 15.4%; computer software and programing, 12.9%; electronics and electrical equipment, 9.6%; vehicles and transportation, 6.8%; telecommunications, 6.5%; consumer non-durables, 2.8%; pharmaceuticals, 2.6%; engineering, 1.9%; metals and mining, 1.7%; food, 1.3%; and chemicals, 1.0%.

We still like the long-term outlook for Indian stocks. India Fund is up 102.0% since its March 2009 low of $12.88. The fund sells for a 4.3% discount to its net asset value. Its MER is 1.28%.

India Fund is a buy for aggressive investors.

NEW IRELAND FUND $6.98 (New York symbol IRL; Shares outstanding: 7.2 million; Market cap: $50.3 million; CWA Rating: Aggressive) invests in Irish companies. Bank of Ireland manages the fund.

Lower housing prices and a struggling banking sector have hurt the Irish economy. However, the country is open to foreign investment, and has invested heavily in education and training. It is also part of the euro currency zone. These factors should benefit the Irish economy over the long term.

The New Ireland Fund’s top holdings are: CRH plc (building materials), 19.8%; Ryanair Holdings (airline), 10.7%; DCC plc (business services), 7.3%; Elan Corp. (health-care services), 5.7%, Aryzta AG (agriculture and food), 4.6%; Kerry Group (food products), 4.3%; Grafton Group plc (building materials), 4.2%; Allied Irish Banks, 4.0%; Dragon Oil plc, 3.7%; and Irish Life & Permanent plc, 3.5%.

The New Ireland Fund holds stocks in the following major industries: construction/building materials, 27.3%; transportation, 12.5%; food and beverages, 10.8%; health-care services, 9.9%; financial, 7.5%; business services, 6.9%; diversified financial services, 5.0%; food and agriculture, 4.6%; and energy, 3.7%.

The New Ireland Fund is up 116.8% since its March 2009 low of $3.22. The fund trades for 15.9% less than the value of its assets. Its MER is 1.56%.

New Ireland Fund is still a buy.