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.
Posted by: Pat McKeough
CHILE FUND $21.02 (New York symbol CH) (CWA Rating: Aggressive) has net assets of $209.4 million U.S. It’s managed by Credit Suisse.
Prices for copper, a key commodity for Chile, are down from their highs, but still remain strong. Chile is a major exporter of copper, particularly to Asia. It’s the world’s biggest supplier of copper. Other important non-mineral exports are …read more »
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Posted by: Pat McKeough
JAPAN EQUITY FUND $8.61 (New York symbol JEQ; CWA Rating: Aggressive) invests mostly in large capitalization stocks on the Tokyo Stock Exchange.
The Japan Equity Fund’s top holdings are: Toyota Motor, Mitsubishi UFJ Financial Group, Mizuho Financial Group, Matsushita Electric Industrial, Nomura Holdings, East Japan Railway, Canon, Takeda Pharmaceutical, NTT and Honda Motor.
Japan Equity Fund is available for 2% less than …read more »
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Posted by: Pat McKeough
We’ve recommended a select number of closed-end mutual funds over the years in Canadian Wealth Advisor as a great way to buy high-quality assets at a discount.
As we’ve said, many closed-end funds eventually liquidate, or transform themselves into open-end funds. When that happens, much of the discount disappears overnight. The fund’s shares may then jump up to 30% or more.
A …read more »
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Posted by: Pat McKeough
SCUDDER NEW ASIA FUND $22.95 (New York symbol SAF; SI Rating: Aggressive) invests in a diversified portfolio of Asian and Pacific Rim stocks. It’s managed by Deutsche Asset Management.
Scudder New Asia has 24% of its assets in Korea, 17% in Japan, 16% in Taiwan, 15% in Hong Kong, and 8% in China.
The fund invests in companies with superior management, dominant …read more »
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Posted by: Pat McKeough
BRAZIL FUND $62 (New York symbol BZF) (CWA Rating: Aggressive) will not convert into an open-ended fund, as proposed by its managers. Shareholders rejected the plan at a special meeting.
Brazil Fund now trades at a 6% discount to its net asset value. Brazil is the most populous country in South America, and it has the biggest economy.
Brazil Fund is up …read more »
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Posted by: Pat McKeough
We devote a lot of time to analyzing closed-end funds because these funds often provide attractive opportunities for our clients. We mainly recommend closed-ends when they trade for less than asset value, as they often do. For every $1 you invest in a closed-end, you may have $1.10 or $1.20 working for you.
Then too, closed-end funds sometimes rise in value …read more »
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