Closed-end fund opportunities? (SBF, HIX, SCD)

 |  Includes: HIX, SBF, SCD
by: David Jackson

Interesting article in Barron's (paid subscription required) about Citigroup closed-end funds. The bottom line: as Citigroup sells its funds to Legg Mason, it's coming under pressure to eliminate the discounts on its closed-end funds. They include the Salomon Brothers Fund (SBF), trading at a 9.9% discount to net asset value (NYSE:NAV), the Salomon Brothers High Income II (NYSE:HIX), trading at a 10% discount, and the Salomon Brothers Capital and Income Fund (NYSE:SCD), trading at a 13% discount. If the discounts close, these funds will be (relatively) good investments.