Description

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

Sources of Reference Information

Reference Books

Many of the usual investment books include a chapter or at least a mention of CEFs when discussing mutual funds. Some books that focus specifically on CEFs are:

The Investor's Guide to Closed-End Funds: The Herzfeld HedgeThomas J. Herzfeld, McGraw Hill, 1980.

An excellent book that covers closed-end stock funds, closed-end bond funds, closed-end convertible bond funds, closed-end specialty funds, dual-purpose funds, and closed-end fund hedging and arbitraging. Emphasis on trading CEFs. The only drawback is that it is a bit dated.

Investing in Closed-End Funds: Finding Value and Building WealthAlbert J. Fredman and George Cole Scott, Simon and Schuster, 1991.

A more recent book, provides an excellent introduction to investors seeking to learn about closed-end funds. Covers the basics of CEFs, the different types of CEFs, closed-end bond and convertible funds, and useful tips on dealing with brokers and building portfolios of CEFs. Emphasis on long-term value investing.

The Complete Guide to Closed-End Funds: Finding Value in Today's Stock Market

Frank Cappiello, W. Douglas Dent, and Peter W. Madlem, International Publishing Corporation, 1989.

A concise introduction to CEFs, their history, their benefits and drawbacks, building portfolios, and trading CEFs. Cites an interesting study by Seth Copeland Anderson (published in the Journal of Portfolio Management, Fall 1986) on eight trading strategies involving CEFs, all of which beat the S&P500. Bulk of the book is summaries of a large number of equity CEFs, REITs, and bond CEFs. A more recent book by the authors is also out.

Newsletters

Many investment newsletters and periodicals focus on CEFs, or cover some of them.

Morningstar Closed-End Funds.

Covers most of the CEFs grouped into categories: Europe, Latin America, Pacific/Asia, World, Domestic Equity, Income, Convertible, Corporate Bond High-Yield, Corporate Bond, Government Bond, International Bond, Multisector Bond, Municipal Bond National, and Municipal Bond Single State. Fairly similar to their coverage of mutual funds. Includes lots of useful statistical information, charts, portfolio analysis, information about the fund, and a commentary. Published biweekly, in six issues covering all the above categories: the same fund will be re-analyzed after six issues or twelve weeks.

The Value Line Investment Survey.

Covers a few of the older CEFs in its standard Value Line Publication. Includes commentary, statistical information, charts, portfolio description, basic fund information, and projections.

The Investor's Guide to Closed-End Funds. Thomas J. Herzfeld Advisors, Inc.

Monthly research report covering about 500 funds (each issue covers over 40 funds). Includes statistical information, charts, portfolio analysis, and recommendations. Herzfeld also runs a brokerage firm specializing in closed-end funds. Herzfeld has been covering CEFs for over 40 years, and is widely acknowledged to be a leading authority in this field.

The Scott Letter: Closed-End Fund Report. George Cole Scott

Published monthly. Includes interviews of portfolio managers, statistical data, recommendations, and news.

Newspapers

The weekly NAV and discount/premium is published in many newspapers or weeklies, including Barron's and Monday's Wall Street Journal, under the title of closed-end funds or publicly traded funds.

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