CEF Weekly Review: Taiwan Fund

by: Joe Eqcome

Actionable Items:

Highest Positive Spread: Western Assets Income Fund (NYSE:PAI)

Lowest Negative Spread: Canadian World Fund Limited (OTC:CWFNF)

Focus Stock(s) of the Week: Taiwan Fund (NYSE:TWN)

Last Week's Focus Stock: Nuveen Select Tax-Free Income Portfolio 2 (NYSE:NXQ)

CEF Weekly Review: On average, the 13 closed-end fund (CEF) types registered a share price increase of 0.2% for the week ending 11/2/12. The high-low spread (average percentage price change difference between the highest and lowest fund types) registered this week was +2.0% versus last week of +2.1%. On an aggregate unweighted basis, the weekly average price change for the approximately 521 CEFs in the GrowthIncome database was -0.06%. The aggregate total assets were $268.2 billion.

The PowerShares CEF Income Composite (NYSEARCA:PCEF), an ETF that invests in taxable fixed-income CEFs, advanced 0.2% for the week. PCEF is now up 9.2% yield-to-date on price appreciation alone. Currently, PCEF's trailing twelve months' yield is 7.9% (YTD monthly total return of 17.1%).

CEF Weekly Fund Type Performance: While InvGrdBndFnds (+1.1%) and USMrtgBndFnds (+1.0%) were winners this week, equity funds advanced: WrldEqFnds (+0.6%), GenEqFnds (+0.6%) and SpecEqFnds (+0.4%). While losers were winners this week, both NatlMuniBndFnds (-0.9%) and SingleStMuniFnds (-0.4%) had losses. NatlMuniBndFnds had a negative PrcNAVSprd of equity at 1.0% in the previous week (normally good).

Western Assets Income Fund share price increased 3.4% with a change of +0.1% for the NAV. This would indicate a positive PrcNAVSprd of 3.4% (price change relative to NAV change-negative at best). The stock is trading at a premium of 4.8% and has a 4.6% yield.

Canadian World Fund Limited share price declined from 2.3% and its NAV increased to 1.8% for a negative PrcNAVSprd of 4.1%.

Focus Stock(s) of the Week: Taiwan Fund is our best pick of the week. The annual dividend will likely be preceded in the month of December and be payable in January. The weekly share price was down 2.2% and the current NAV was up 1.0%. This will take the PrcNAVSprd down about 3.2% (normally good).

Focus Stocks of Last Week: The focus stock last week was Nuveen Select Tax-Free Income Portfolio 2 , up 1.2%.

Joe Eqcome

Disclosure: I am long PCEF, NXQ, TWN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.