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Morningstar, Inc. Commentaries

The Z-Statistic Is No Silver Bullet

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.

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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.