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I am a value investor and, when investing in stocks, I often seek out companies that appear undervalued. Closed-end fund (CEF) values can often be found in a similar fashion.

The net asset value (NAV) of a CEF is the total value of all the securities in the fund divided by the number of shares and, therefore, represents the true current value of the fund. The market price of the fund, however, often varies from the NAV. When the fund's share price is higher than the NAV per share it is said to be selling at a premium; when it is lower it is selling at a discount to the NAV per share. As many believe, myself included, that the best value is found in CEFs that are trading at a discount to NAV. This series offers 24 high yielding funds that are currently trading at a discount.

Below is a list of five closed-end funds that yield over 10% and are currently trading at a 12% to 15% discount to their respective net asset value :

1. Eaton Vance Risk-Managed Diversified Equity Income Fund (NYSE:ETJ) is currently trading at $10.34, a 15.59% discount to its net asset value of $12.25. The fund focuses on investments in dividend paying common stock as well as covered call and options strategies and offers a 10.79% annual distribution rate, with distributions occurring on a quarterly basis. It is also worth noting that the most recent distribution amount of $0.2790, which occurred on April 30th, 2012, was a reduction from previous distributions of $0.3195.

(Click charts to enlarge)

2. Eaton Vance Tax-Managed Premium & Dividend Income Fund (NYSE:ETY) is currently trading at $9.46, a 13.92% discount to its net asset value of $10.99. The fund focuses on dividend paying common stocks whose income is exempt from Federal income tax and also utilizes options strategies for capital appreciation. ETY offers a 10.70% annual distribution rate, with distributions occurring on a quarterly basis. As with ETJ, it is worth noting that ETY's next distribution amount of $0.2530, which will occur on May 31st, 2012, is a reduction from previous distributions of $0.2895.

3. Eaton Vance Tax Managed Global Buy Write Opportunities Fund (NYSE:ETW) is currently trading at $10.88, a 13.86% discount to its net asset value of $12.63. The fund focuses on investments in global common stock and through covered call and options strategies. ETW offers a 10.74% annual distribution rate, with distributions occurring on a quarterly basis. Like the funds above, ETW's most recent distribution amount of $0.2920, which occurred on March 30th, 2012, was a reduction from previous distributions of $0.3024.

4. Eaton Vance Tax-Managed Global Diversified Equity Income Fund (NYSE:EXG) is currently trading at $8.79, a 13.57% discount to its net asset value of $10.17. The fund focuses on investments in global common stock and through options strategies. EXG offers an 11.10% annual distribution rate, with distributions occurring on a quarterly basis. This fund will also experience a distribution reduction, from its previous distribution of $0.2843 to its next distribution, occurring on May 31st, 2012, of $0.2440.

5. GDL Fund, Common Shares (NYSE:GDL) is currently trading at $12.25, a 12.12% discount to its net asset value of $13.94. The fund focuses on investments in merger arbitrage transactions, corporate reorganizations involving stubs, spin offs, and liquidations. GDL offers a 10.45% annual distribution rate, with distributions occurring on a quarterly basis.

Continue to Part ll

Disclaimer: The funds listed above are offered as speculation only. It is assumed that investors perform thorough research before entering any position mentioned in this publication. Information and charts from finviz.com and cefconnect.com.

Source: 24 CEFs Yielding Over 10% Trading At A Discount To NAV: Part I, 12% To 15% Discount