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Subject:  Closed end funds Date:  1/25/2011  1:50 PM
Author:  billjohn4 Number:  32160 of 36397

I have a problem. I have owned for a significant time period two closed end funds that invest primarily in junk - Eaton Vance Ltd Duration fund (EVV) and AGIC Convertible & Investment Fund (NVC). For time period I've owned them (about 7 years) they have returned 7% annualized. Both pay a substantial dividend.

Recently (last three months), AGIC has continued to be rewarding (28% annualized), while EVV has headed in another direction (0% annualized). The dividend yield on AGIC is over 10%, while EVV's divident yield is 8.7%. It's my thesis that the problem with EVV lies with that portion of its portfolio that is NOT junk - MBS's, while AGIC allocates a significant %age to convertibles.

Other than the problems associated with closed end funds, I'd appreciate anyone's thoughts of why the divergence in results of late.

Thanks, Bill
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