Beginner
Calculating a discount or premium to NAV
A discount compares the share price with the net assets behind each share. The calculation is simple, but the denominator and the observation time must be...
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Closed End Funds Investment Guide
Understand closed end funds, investigate discounts and distributions, and build a disciplined research process. Follow eight stages from ownership and market pricing to portfolio construction and advanced analysis.
Start with What you own in a closed end fund, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.
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Discounts and Premiums · All lessons
Discounts and Premiums
Measure market valuations and investigate why discounts can persist.
Beginner
Why discounts can persist for years
A persistent discount can reflect expenses, risk, weak demand or uncertainty about the portfolio. It does not have to close just because it looks large.
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Beginner
Using discount history and z scores carefully
Discount history adds context to today’s valuation. A z score expresses distance from a historical average, but it cannot tell you whether the old average still...
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Beginner
Separating portfolio returns from discount changes
Your share price reflects both the value of the portfolio and the market’s valuation of that portfolio. Separating these movements makes performance easier to understand.
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