IGD Holdings

A reader was kind enough to dig up the link on the ING web site with the holdings of IGD, the global covered call CEF that I have written about a couple of times, writes Roger Nusbaum.

The country break down is (subject to rounding up or down):

US 35%
UK 12%
Italy 7%
Australia 6%
Netherlands 3%
Sweden 3%
Denmark 2%
Taiwan 2%
Belgium 2%
Brazil 2%

There aren't too many ADRs from the above countries that have options available. The prospectus says that the managers can own foreign stocks from the local markets. I know that Australia does have a local options market but I do not know much about the others.

So my original idea about a heavy weighting in US may or may not be the case depending on your idea of 35%.

The prospectus makes a point of saying the fund focuses on stocks that pay dividends. A good chunk of the 10% yield of the fund comes from dividends. I view that as a positive. Eight of the top ten holdings yield 4% or better. A 3% or 3.5% dividend yield for all the holdings takes a some of reliance off of the option writing aspect of the fund.

IGD is a little more interesting than I first gave it credit for. I think my interest is more along the line of the portfolio construction as opposed to buying the fund but that may change. Perhaps my interest stems from the Foreign DVY I wrote about the other day.