Closed-End Funds 

We apply an analytical and value-based approach to Closed-End Fund investing. We identify, evaluate, and invest in CEFs based on the following criteria.

Identify

Investment opportunities may exist when:

The correlation between a CEF's share price and net asset value becomes overly dislocated from historical averages

News may not have been appropriately reflected in share price

A CEF trades at large discounts to its net asset value

An investor can capture a CEFs discount yield benefit

Evaluate

Stifel research analysts evaluate individual CEF holdings in an effort to:

Assess ability to pay current dividend yields

Estimate consistency of dividend distributions

Appraise macroeconomic events that may have a positive or negative effect on a fund’s future performance

Determine a fund's risk profile, i.e., a fund's leverage

Invest

A blended portfolio of CEFs is constructed with the following criteria:

Diversification through multiple asset classes

Total return potential

Yield

Supply demand dynamics

Changes in market conditions or a company’s financial condition may impact the company’s ability to continue to pay dividends.  Companies may also choose to discontinue dividend payments.