Closed-end Funds Discounts Deciphered

Morningstar's Mike Taggart answers your questions about closed-end fund discounts and how to avoid value traps

Holly Cook 2 March, 2011 | 3:05PM
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In our latest closed-end fund webinar, held earlier today, Morningstar Closed-end Fund Strategist Mike Taggart discussed some of the reasons why CEFs trade at a discount to their net asset value (NAV) and how investors should avoid value traps. Taggart also responded directly to listeners' questions about how to measure discounts, discount trends among various sectors, and and the best methods of assessing funds' discounts.

Listen again to the webinar and view the accompanying slides by clicking 'Play' below. If you are not already a BrightTALK member you will need to first register--registration is fast and free, and need only be completed once.

As well as this webinar, we are also releasing two additional CEF Solutions this week, to further assist in the understanding of discounts and premiums. Among them, Relative Discounts & Premiums explains why these are a better measure than absolute discounts and premiums for assessing CEFs and how, as a result, they can help to reduce the chances of a bad investing experience by setting more realistic investor expectations. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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