Morningstar, Inc. Commentaries
Aug 1, 2014
Click here to access The Z-Statistic Is No Silver Bullet
Investing in a closed-end fund is more complicated than investing in a mutual fund that's run by an experienced manager with a consistent and repeatable process and that charges low fees. Investors must also carefully evaluate a CEF's distribution policy and consider its sustainability, as well as the amount and type of leverage, to understand the potential volatility of returns. The final piece is valuation.