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Morningstar, Inc. Commentaries

Should Your Fund Manage Its Distribution?

Jun 6, 2014
Click here to access Should Your Fund Manage Its Distribution?

Many closed-end funds live and die by their distributions. A high distribution rate can woo investors, pushing share prices up, but a below-average distribution rate can create a persistently wide discount. Even during times of poor performance, funds are reluctant to lower distribution rates for fear of driving investors away.

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Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individuals, financial advisors, and institutions.

Morningstar provides data on more than 385,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 8 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services and has approximately $195 billion in assets under advisement or management as of Sept. 30, 2012. We have operations in 27 countries.