5 Best CEFs To Buy This Month (August 2023)


Stimulate business. Solutions to boost income.

Olivier Le Moal

In this monthly article, we try to identify five closed-end funds (“CEFs”) that have a solid historical performance, pay high-enough distributions, and offer reasonable valuations at the current time. We also present a more diversified list of the top 10 funds.

Criteria

Brings down the number of funds to…

Reason for the Criteria

Baseline expense < 2.5% and Avg. Daily Volume > 10,000

Approx. 435 Funds

We do not want funds that charge excessive fees. Also, we want funds that have fair liquidity.

Market capitalization> 100 Million

Approx. 400 Funds

We do not want funds that are too small.

Track record/ History longer than five years (inception date 2016 or earlier)

Approx. 375 Funds

We want funds that have a reasonably long track record.

Discount/Premium < +7%

Approx. 350 Funds

We do not want to pay too high a premium; we want bigger discounts.

Distribution (dividend) Rate > 5%

Approx. 250-290 Funds

The current distribution (income) is reasonably high.

5-Year Annualized Return on NAV > 0% AND

3-Year Annualized Return on NAV >0%

Approx. 200-220 Funds

We want funds with a reasonably good past track record in maintaining their NAVs.



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