Morningstar, Inc. Commentaries
Mar 4, 2014
Click here to access CEF Weekly Update: An Overvalued Fund Now Slightly Less Overvalued
A Collapsing Premium
After reaching an inexplicably high premium in late January, shares of Chile Fund(CH) are finally coming back to earth. Partially because of its persistently high levels of return of capital, and partially because of the poor performance of Chilean equity markets, the fund's net asset value has depreciated close to 33% during the past year. Meanwhile, share prices have seen some odd behavior during that period, reaching a 30% premium last August before falling down to NAV by December.