Discounted Closed-End Funds (CEFs): The article discusses the potential of investing in discounted closed-end funds, which can offer high yields and trade below fair value, making them appealing for contrarian investors. Examples include Nuveen Dow 30 Dynamic Overwrite Fund and Neuberger Berman Next Generation Connectivity Fund, both providing attractive distribution rates.
Investment Strategies and Performance: Various CEFs are highlighted for their unique investment strategies, such as covered calls and thematic focuses on technology and connectivity. While some funds like Royce Micro-Cap Trust have shown consistent outperformance, others like Virtus Total Return Fund face challenges in comparison to benchmarks, emphasizing the importance of selecting the right funds for income generation.
Royce Micro-Cap Trust, Inc. (the Fund) is a diversified closed-end investment company. The Fund's investment objective is long-term growth of capital, which it seeks by investing primarily in equity securities of companies. The Fund primarily invests in micro-cap securities. It normally invests at least 80% of its net assets, such as common stock and preferred stock. In addition, under normal circumstances, at least 40% of its net assets will be invested in the equity securities of companies. The Royce Investment Partners (Royce) is the Fund’s investment adviser.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
