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I've been looking into bond CEFs recently and wondered if people had recommendations of funds and or resources. I had some questions on how to best screen for them in the records here, but also wondered on good reading resources for them. Current funds that have caught my eye are: DSL, GOF, PDI, and PTY. Any thoughts or recommendations would be appreciated
I'd recommend ginning up and maintaining a spreadsheet with the data you consider most important to help you make buy/sell decisions. CEF investing has more moving parts than OEF investing, and imho, it's helpful to lay out at least a provisional decision process if you're going to get into it in any significant way.
The M* CEF dissuasion forum is outstanding. I hold 3 of your eye catchers but I'm way too full of PDI which currently is a bit stretched. PCI, very similar, is a better buy at the moment in my opinion.
I have made a fair amount on PCI the last couple of months; PTY is insane premium, and PDI is close, imo. Not that the premia can't get crazier.
I don't know what to do after I sell PCI in a while.
(Every time I think of splitting it among FAGIX, FTBFX, and whatever Fido Strategic Income is called now, impossible to research these days at least at M*, it looks like PONAX can do as well, almost. ZEOIX recently looks better and better too, a different fish. OT to CEF query.)
The premiums are currently crazy on many CEFs, I put out some limit orders that I'll be shocked if fill on PDI and GOF. The thesis of the investment is more focused on income stream and yield than on capital appreciation.
Good sites to peruse as I wait for premiums to return closer to average territory and learn more.
"Information on closed-end funds is far more limited than their more popular relatives, mutual funds and exchange- traded funds," thus reads the first line of a decent summary of sources of information:
I stopped investing in equity CEFs when ETFs, particularly EM and country-specific funds, became available. I did subscribe to Herzfeld's service for a limited period and I found that even following the recommendations of a service required a lot of time and effort. Patrick Galley at RiverNorth Capital is also an expert on CEFs. He runs fund-of-funds and uses discount/premium arbitrage in the company's MFs.
GOF is a fund of funds so your expense ratio is double. The two Pimcos are excellent, but too expensive to buy now. CEFs go on sale about twice a year, and on a panicked protracted many months long selloff every 2.5 - 3 years. So be patient. Oh, and DSL has nothing going for it, but the name of its manager. NAV return is average, and it hasnt earned its distribution in a while. Overpriced by about 5-7%. Watch and study them. Don't rush.
@davidrmoran: i only addressed the names the OP has mentioned. PCI is not expensive compared to other Pimcos, but is at record valuation compared to its own history and stated yield. (one can hope for the year-end special, of course.)
for those who have them, they are keepers. pimco generous distribution reinvestment policy makes holding premia funds a bit easier. none of them is a buy today, however. (in my opinion, of course:)) there are more fairly priced funds out there, but one needs to do a bit of due diligence...
@fundalarm GOF apparently caps investments in other funds at 30% but an important thing to be aware of. And yes, definitely studying before leaping in.
Comments
Morningstar has forums on CEF and Buy & Sell.
I'd recommend ginning up and maintaining a spreadsheet with the data you consider most important to help you make buy/sell decisions. CEF investing has more moving parts than OEF investing, and imho, it's helpful to lay out at least a provisional decision process if you're going to get into it in any significant way.
Good luck --
I don't know what to do after I sell PCI in a while.
(Every time I think of splitting it among FAGIX, FTBFX, and whatever Fido Strategic Income is called now, impossible to research these days at least at M*, it looks like PONAX can do as well, almost. ZEOIX recently looks better and better too, a different fish. OT to CEF query.)
Good sites to peruse as I wait for premiums to return closer to average territory and learn more.
their more popular relatives, mutual funds and exchange-
traded funds," thus reads the first line of a decent summary of sources of information:
http://www.aaii.com/investing/article/web-sites-for-closed-end-funds.pdf
I stopped investing in equity CEFs when ETFs, particularly EM and country-specific funds, became available. I did subscribe to Herzfeld's service for a limited period and I found that even following the recommendations of a service required a lot of time and effort. Patrick Galley at RiverNorth Capital is also an expert on CEFs. He runs fund-of-funds and uses discount/premium arbitrage in the company's MFs.
You are not including PCI, right?
(Always good to see you weigh in.)
for those who have them, they are keepers. pimco generous distribution reinvestment policy makes holding premia funds a bit easier. none of them is a buy today, however. (in my opinion, of course:)) there are more fairly priced funds out there, but one needs to do a bit of due diligence...