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“Discount View” Investius Interview from Morningstar’s 26th Investment Conference

by on July 8, 2014

JCS-Investius-Disc-2014-06Discounts persist in several sectors that may be attractive to CEF investors, says John Cole Scott of CEF Advisors.

Investius: Everyone likes a bargain… including closed-end fund investors. Amid the action and excitement of the perennial Morningstar investment conference in Chicago, John Cole Scott of CEF Advisors shares his view on discount trends in the closed-end fund market.

John Cole Scott, CEF Advisors:

According to our universe data as of mid June, muni bond funds are just under 5% in average discount.  Taxable bond funds are just over 5%, sector equity are around 6%, and both non-US and US equity funds are around 8% discounts.  What’s interesting is if you look at current discounts versus the lows the past few months versus the peak from about a year or so ago, we’re about a third up from the bottom, which tells us that, while it’s not as cheap as it was recently, it’s still not over-expensive in our opinion.

Watch two minute video:

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