The Asia Tigers Fund (GRR) is a closed-end fund that invests in Asian equities. With an NAV of $13.56 and market price of $12.78, it trades at a discount of over 5%. The 1-year NAV return has been over 14%. The distribution yield is over 21%. That distribution is almost entirely capital gains. It traded ex dividend on December 19, 2012. It is managed by Aberdeen Asset Management Asia. This is a very small fund -- total net assets of November 30, 2012 were $55 million. Portfolio turnover is high, coming in at over 40%. Management fees run at about 1% and the expense ratio is over 2%.
In terms of the portfolio, top sectors include financials, industrials, and technology. Top holdings include Oversea-Chinese Banking Corp, Jardine Strategic Holdings, and Taiwan Semi. One could invest in the iShares MSCI Pacific ex Japan ETF (EPP) for a correlated fund with a lower expense ratio and more liquidity.
So why GRR? In the worst kept secret since you read the title of this article, GRR semi-annually repurchases up to 5% of their outstanding shares. Larger holders are prorated, but holders of 99 or fewer shares are not. So, one could buy 99 shares for a total of about $1,265.22. Tender them into the next buyback for a total gain of around $50.37. One can execute this twice a year for a total of over $100 for around an 8% yield. Not a lot of dollars, but I also pick up coins on the street and it seems to add up over time.
Disclosure: I am long GRR.