Equity CEFs: Which Fund Would You Rather Own?
By Douglas Albo:
High-yielding equity closed-end funds (CEFs) can often trade at valuations that don't correlate to their NAV performances and I wanted to write about some of these valuation discrepencies that exist between funds to give investors an opportunity to see what funds may be undervalued and which funds may be overvalued.Let's start with a couple global funds. The first is the Calamos Global Dynamic Income fund (CHW) and we're going to compare it against the ING International High Dividend fund (IID). Both funds are similar in the sense that they have global equity portfolios and came public around the same time in 2007 near the market high. In addition, both funds offer monthly pay distributions of similar yields which is a nice feature compared to quarterly pay distributions.The primary difference between the two funds is how they generate income to pay for their high distributions and yields. CHW usesComplete Story »