Description

This article is from the A Guide to Closed-End Funds (CEFs).

Jakarta Growth Fund

As the chart below shows, the Jakarta Growth Fund has consistently traded at a premium most of 1993 and 1994. On the rare occasions when the CEF traded close to its NAV or at a discount, the CEF provided some protection against subsequent downturns in the NAV.

1. On March 31st, the Jakarta Growth fund was trading close to its NAV. Within a week or two though, the CEF was back to its customary premium. From March 31st to April 14th, the market price of the CEF showed a profit of around 9% (from $9.4 to $10.25), but the NAV in the same period, showed a loss of -4% (from $9.4 to $9).
3. Towards the end of June 1994, the market price was again at its NAV, but within two weeks was back to usual premium. In that time, the market price of the CEF showed a gain of around 14% (from $8.6 to $9.9), but the NAV in the same period actually showed a mild loss.

 

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