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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: LemonHead who wrote (6939)	2/26/1999 10:33:00 PM
From: Bernie Goldberg	Read Replies (2) \| Respond to of 18928

Hi to all, First I want to thank everyone for the quick response on how to get italics. In response to Lemonhead these are CLOSED END FUNDS. They are funds but they are treated the same as stocks. site-by-site.com The above is an address where you can get an 18 page report on all the closed end funds in existence. They can also be found in Monday's Wall Street Journal. You'll get plenty of data at the web address. Most of the income funds pay dividends monthly. You can get the dividends in cash or if your broker provides it, they can be reinvested. If you invest $50,000 at 10.1% you will receive $5050 per year in dividends. What is a high NAV? A funds price is usually determined by its Net Asset Value which is the total value of everything it owns divided by the number of shares. The price of Closed End Funds however is determined by the market. If the Net Asset Value is higher than the price that fund is selling at a discount. That's usually considered good. Most literature on CLosed End Funds recommend only buying them when they are at a discount. Hope this helps. Bernie

To: LemonHead who wrote (6939)	2/26/1999 11:59:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 18928

Hi Keith, There's a list of closed end bond funds in every week's BARRONS which will give you the NAV, the yield and the highs and lows for the period. These bond funds,because they are traded like stocks, will trade at a premium or discount to their Net Asset Value depending upon market conditions. Down side is that the Net Asset Value (NAV) will drop when interest rates are rising. This means that you will be receiving dividends while the share price is dropping. However, if you are not intending to cash the shares in, this doesn't make a big difference. Another slower form of down side is the slow erosion of dividend. If interest rates continue to drop over time, these long term bond funds need to lower their own yield since they have to roll over their own portfolios as they mature. ACG and GSF as well as NUV and NPI all pay on a monthly basis, so they are very nice for income. Since shares are sold on the NYSE, the only minimums are what you impose upon yourself. You are buying shares of a stock just like any other stock except that this one pays you very handsomely. Good luck with the first AIM meeting there in your home turf. Let me know if I can help. Hope this helps, Tom