Closed End fund ROC

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cmills
Posts: 11
Joined: Tue Aug 26, 2014 1:06 pm

Closed End fund ROC

Post by cmills » Tue Sep 19, 2017 5:41 pm

Is the mechanism for closed end equity funds to make distributions -- that they sell stock and thus report it as Return of Capital?
Or are they in fact cannibalizing the NAV when ROC shows up in their distribution history? I am pretty sure that cannibalization would be the case with a bond fund but is it different with equity funds? (of course could be wrong about the bond fund but seems like I have read negative UNII and ROC are doing something to this effect on the NAV) Hopefully some of you with real closed end experience can help on this.

Criss

cmills
Posts: 11
Joined: Tue Aug 26, 2014 1:06 pm

Closed End Funds

Post by cmills » Tue Sep 19, 2017 5:43 pm

Anyone have any closed end funds they like now. I have been waiting for the discount to get larger on several for sometime but things seem to have gone the other way in the last 6 months or so

Criss

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prudent
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Joined: Fri May 20, 2011 2:50 pm

Re: Closed End fund ROC

Post by prudent » Tue Sep 19, 2017 6:30 pm

[Two threads combined due to same topic - moderator prudent]

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