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Author: greenmartianV Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 21606  
Subject: Re: Foreign closed-end funds Date: 12/7/2009 12:34 PM
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Some of these funds might be worth some thought. Historically, as a rule, when they are undervalued to this extent (NAV-wise), more often than not, they tend to outperform for the next few years as asset prices returning to par, or beyond, boost returns.

fwiw, a good source of discount/premium information is located on CEF connect, which is Nuveen's database of closed end funds (used to be ETF Connect but they apparently got tired of the ETF competition) using M* data.

Minor point, but even some of the funds referenced have underperformed their index cousins, some by a wide amount, and thus are probably deserving of a wide discount. Euro Equity fund, for example, has underperformed, on an NAV basis, in the Vanguard Index Europe fund by a decent amount over 5 and 10 year periods, and plus too EEA has a 1.43% expense ratio vs. 0.29% for the Vanguard fund. Of course, as noted in the post you can sometimes make a good living trading these things when they reach the upper end of their discount ranges (especially since this happens most often during periods of stress; where was I earlier this year?) The CEF Connect site has a handy tab for P/D history.

One problem I have with a lot of these closed end funds is they do a particularly bad job communicating with share holders. For example, I own the Templeton Dragon fund and shareholder reports are very uninformative, always late, and don't bother to even discuss prominent holdings. Granted, there are exceptions, but many of them do a lousy job so it is hard to make a really informed decision sometimes. Anyway...just 2c.
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