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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gizwick who wrote (51465)

5/3/2013 6:09:18 PM

From: E_K_S

Read Replies (1) | Respond to of 78767

Hi gizwik -

I use CEF connect when shopping for CEF funds.

Credit Suisse Income:CIK

The fees are reasonable at 0.73% but it does sell a premium to it's NAV. That's probably ok as long as the Fed stays w/ their current QE program.

I suspect many of these CEF funds that have a pretty good yield are selling at a premium to their NAV. Lots of investors are chasing yield which drive up the price. I see that one of my favorites Tortoise Power and Energy Infra (TPZ) is now selling at a premium too (and their expense ratios are higher).

EKS

To: gizwick who wrote (51465)	5/6/2013 9:24:02 AM
From: MCsweet	Read Replies (2) \| Respond to of 78767

I concur with EKS. CIK might be a good long-term holding, but at an 8% premium, I think it is expensive. And with high yield averaging under 5.5%, the asset class is not that attractive (although maybe it is the best house in a bad neighborhood). PCI is one at a slight discount. The fund NAV has done great over its short lifespan, but I cannot vouch for the NAV going forward. However, you are getting PIMCO managment at a slight discount versus a few funds like PHK, TRY, PCN at large premiums. MC