Hi Keith,
I am responding late to your query about closed end funds, since I don;t know what you were told. I have become disenchanted with closed end funds. I had the Gemini II fund in the early 1990's which was a dual purpose fund, ie., an equity appreciation fund, and a mirror fund that got all of the income. It was managed by John Neff, the famous guru that made history with the Windsor Fund. He was a value player.
The majority of closed end equity funds trade at a discount to net asset value, so they (at first blush) appear to be a great buy. However, they rarely reach full net asset value. They always remain at a discount. I took a bath (a minor one) in the early 1990's as I had some country funds and international funds in the closed-end format.
I avoid international investing in distinction to the advice of brokerages such as Merrill which advise 10% to even 20% of one's assets to be international. There is just too much currency risk, political risk etc. in these stocks. Also, you just don't know the companies as well. You have to put your faith in a fund portfolio manager who is paid to invest internationally and may be gone tomorrow. A global fund which permits US stocks in it such as Scudder Global or janus Worldwide is not bad, or Fidelity International Growth & Inc. fund which is more conserative, but I am off track.
I don't see the advantages to closed end funds in general and the market , I believe, has voted with me.
Floyd
Lakeland, FL |
