Five International CEFs Selling at Deep Discounts to Their NAVs

Many of the closed-end funds are trading at a discount to their NAVs. When these funds trade at a discount they are considered to be cheap. Closed-end funds can swing wildly during volatile markets such as the one investors are currently enduring.

The following are five cheap closed-end funds:

1. New Germany Fund (GF)
Discount to NAV: (21.57%)

2. Spain Fund (SNF)
Discount to NAV: (14.62%)

3. Malaysia Fund (MAY)
Discount to NAV: (11.45%)

4. Mexico Fund (MXF)
Discount to NAV: (9.43%)

5. Korea Fund (KF)
Discount to NAV: (5.73%)

Comments

[Joe Eqcome:]

David,

Just to append onto your thoughts, World Equity funds are the worst performers YTD; down 1.6% versus up 11.4% for the CEF market segment.

In addition to the deep discounts for the stock which you’ve highlighted, let me add to that information the difference between the current discount and the average historical discount since inception (DiscDiff) along with the years since inception.

Sym CurDisc DiscDiff YrsIncep
SNF -16.4% -21.8% 21
KF -4.2% -16.0% 25
MAY -11.9% -9.9% 22
GF -21.4% -4.3% 19
MXF -9.4% 4.0% 28

I hope this is helpful.

Joe Eqcome

Feb 13 05:41 PM

[David Hunkar:]

Thanks Joe for the useful information. I will use this perspective on CEFs when analyzing CEFs.

_David

Feb 14 11:36 AM