New York - London - Athens - Oslo

Morningstar, Inc. Commentaries

CEF Weekly Update: An Overvalued Fund Now Slightly Less Overvalued

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.

provided by:

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.