Closed End Funds
Closed-end funds are mutual funds that offer only a limited and fixed number of units to investors. These units trade on stock markets rather than being redeemed by the fund, and as a result can trade at a premium or discount to the net asset value of the securities held by the fund.
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 …read more »
NEW GERMANY FUND $9.91 (New York symbol GF; CWA Fund Rating: Speculative) is a closed-end fund that mostly invests in small- and mid-cap German equities. The fund’s manager is Deutsche Asset Management.
The $210-million fund’s holdings operate in Germany (91%) and the Netherlands (9%).
The New Germany Fund’s top holdings are European Aeronautical Defense (Netherlands: aerospace and defense), 5.9%; Bilfinger Berger (construction …read more »
KOREA FUND $31.74 (New York symbol KF; CWA Fund Rating: Speculative) is a closed-end fund that invests at least 80% of its assets in Korean equities. Currently, it is entirely invested in South Korean stocks. RCM Asia Pacific manages the fund.
Korea Fund’s top holdings are Samsung Electronics at 14.1%; Posco (steel), 5.7%; LG Electronics, 5.1%; LG Corp. (conglomerate), 4.8%; Hyundai …read more »
Given their attractiveness, it’s a wonder why brokers so rarely recommend closed end mutual funds. However, there’s a simple reason for this: while closed ends benefit individual investors, brokers benefit more by putting their clients in conventional, open-ended funds.
Closed end funds are a lot like conventional, open-ended funds. They hold a diversified portfolio of stocks, chosen by a fund manager …read more »
Turmoil in financial markets and slowing economies have hurt stock markets worldwide. But when government measures to counter the credit crisis begin to take effect, and when economic growth resumes, top-quality foreign stocks should rebound.
Here are four closed-end funds trading on the New York Exchange at discounts to their net asset value. Three are buys, and one is a hold.
SWISS …read more »
Investing in regions or countries outside of Canada and the United States can entail above-average volatility and risk. But these areas can also offer vast potential growth.
We still think that for most investors, the best way to invest in those regions or countries is through mutual funds, rather than individual stocks. And you can cut your costs by buying closed-end …read more »
JAPAN EQUITY FUND $7.39 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange. Lately, the fund has added to its holdings of firms selling to emerging markets, to offset exposure to the slowing U.S. economy. It has also upped its holdings of Japanese financial stocks. These have limited exposure to subprime-related …read more »
Japanese stock markets remain volatile along with global markets. As well, a slowing U.S. economy plus a continued rise in the yen in relation to the falling U.S. dollar would hurt Japan’s major export industries. However, overall, we think that Japan’s economy will keep growing and push stock prices up.
JAPAN EQUITY FUND $7.39 (New York symbol JEQ; CWA Rating: Aggressive) …read more »
Investing in regions or countries outside of Canada and the United States can entail above-average volatility and risk. But these areas can also offer vast potential growth.
We still think that for most investors, the best way to invest in those regions or countries is through mutual funds, rather than individual stocks. And you can cut your costs by buying closed-end …read more »
INDIA FUND $51.75 (New York symbol IFN; CWA Rating: Aggressive) invests mainly in large capitalization Indian stocks. The manager of the fund is the Blackstone Group.
India Fund dropped recently from an all-time high of $71.54 along with turmoil in global stock markets. But the Indian economy is still strong, and inflation and interest rates remain low.
The Indian government encourages foreign …read more »
