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CEFDisc10™ Portfolio Change for Sept ‘10

|Includes: AllianceBernstein Income Fund (ACG), ETG, TRF

CEFDisc10™ is a companion portfolio to the CEFBig10™ and the CEFMuni10™ portfolio family whose primary investment objective is capital appreciation with a secondary investment objective of current income. (For further details see Joe Eqcome’s website.)

The CEFDisc10™portfolio was constructed based upon primary research which demonstrated that extreme relative premium/discounts appear to be a better predictor of future stock price performance than nominal premium/discounts.

Review: For the month of September the CEFDisc10™ average price change was 7.2% versus 3.6% for the Eqcome CEF Price Index.

After reviewing relative premium/discounts, three changes in the CEFDisc10™ were effected. Related rationale for deletions and additions to the portfolio are indicated in the accompanying table.

Portfolio Changes: DCS, EXG and SNF were replaced with AllianceBernstein Income Fund (NYSE:ACG) as the discount appears to be widening on a relative basis. Also added were Eaton Vance Tax Advantage Global Dividend (NYSE:ETG) and Templeton Russia & East Europe Fund (NYSE:TRF).

The CEFDisc10™ portfolio has been in publication only since July 31, 2010. So, there is no meaningful longer-term performance record. Additionally, relative premium/discount was the main criterion for selections. Other metrics, such a distribution yields, composition of the distribution and earnings projections were considered only on a cursory basis.

This article is for educational purposes only. Investors should consult with their financial advisors before making any important investment decisions.

Joe Eqcome

Disclosure: (Disclosure: Long stocks in CEFDisc10™)