The Enhanced Equity Yield Fund - EEF - a new covered call closed-end fund

Jun.24.05 | About: Enhanced Equity (EEF-OLD)

There is a new Covered Call CEF out from Merrill Lynch called the Enhanced Equity Yield Fund (ticker: EEF), writes Roger Nusbaum.

The prospectus didn't download successfully but I did take a look at a press release on Merrill's web site. The press release says the fund will own dividend paying stocks and sell call options on equity indexes. The indexes are not specified.

Technically buying stocks and selling index options is not a covered strategy yet the manager is quoted in the release talking about covered calls. This probably means nothing but it caught my eye.

I was not able to see anything that makes me think the fund is different from the others.

On a related note I found this article from last week about all covered call CEFs.

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