US closed end funds

Discussion in 'Investments' started by joe sod, Mar 2, 2017.

  1. joe sod

    joe sod Frequent Poster

    Posts:
    390
    There has been a lot of discussion on this site about UK investment trusts as a way of buying into investment funds without the tax disadvantages of mutual funds. I'm not going to go into it here as it has been discussed at length before. Some of these trusts have long standing records stretching back many years. Therefore could be classed as buy and forget investments.
    However US closed end funds CEFs have similar structure to investment trusts but seem to be a different animal altogether. Many pay out very high dividends but they cannibalize their net asset value, in other words they pay out a proportion of their net worth in dividends. So the NAV in many cases is gradually decreasing as the years pass. My question is does anyone have suggestions on US CEFs that might have a similar policy and reputation as their UK counterparts, in other worlds their NAV is increasing rather than decreasing and pay a normal dividend.