Top 5 Closed End Funds with the Biggest Discount to their NAV

Unlike an open-end fund, a closed-end fund issues a fixed number of shares during an initial public offering after which these shares are traded on a stock exchange or over the counter. Thus, shares of this type of fund are bought and sold at the market price instead of the securities’ underlying value. This may create a situation where the market price is lower than the net asset value of its components which means that there is a discount to net asset value (NAV). Due to the serious market decline many high quality closed end funds are now selling at a huge discount to their net asset value. Below we will share with you 5 Closed End Funds with the Biggest Discount to their (NAV).

Boulder Total Return (BTF) invests heavily in common stocks of utilities, real estate investment trusts and regulated investment companies. The fund also purchases fixed income instruments such as bonds and preferred stocks. The fund focuses on acquiring domestic securities, but it may also invest in foreign stocks and sovereign debt

The fund has net assets of $206.4 million and as of May 2011, 25.8% of its total assets were invested in Berkshire Hathaway Inc. A. The fund has an expense ratio of 2.19%

Boulder Growth & Income (BIF) seeks both capital growth and current income. The fund invests in both common stocks and income producing securities. At least 25% of its assets are invested in real estate investment trusts and companies. It may also invest in other closed ended income funds such as bond funds

The fund has net assets of $ 175.7 million and as of May 2011, 24.5% of its total assets were invested in Berkshire Hathaway Inc. A. The fund has an expense ratio of 2.19%

Zweig Total Return (ZTR) invests half of its total assets in equity and the other half in fixed income instruments. The fund focuses on investing in large cap companies, but may also invest in small and mid-cap firms. It may also invest 75% of its total assets in equity securities under specific circumstances.

The fund has net assets of $521.1 million and as of March 2011, 12.41% of its total assets were invested in US Treasury Bill. The fund has an expense ratio of 1.12%

Royce Micro-Cap Trust (RMT) focuses on investing in firms with market capitalizations less than $500 million. The fund invests across many sectors such as consumer products, diversified investment companies, consumer and financial services.

The fund has net assets of $258 million and as of June 2011, 13.93% of its total assets were invested in State Street Bank & Trust Company. The fund has an expense ratio of 1.10%

Morgan Stanley China A Share (CAF) seeks capital appreciation. The majority of the fund’s assets are invested in A-shares of Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges. It may also invest in a variety of structured instruments.

The fund has net assets of $585.1 million and as of June 2011, 9.89% of its total assets were invested in Tsingtao Brewery Co., Ltd. The fund has an expense ratio of 1.78%

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Read the full analyst report on BTF

Read the full analyst report on BIF

Read the full analyst report on ZTR

Read the full analyst report on RMT

Read the full analyst report on CAF