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lrp42

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lrp42

Re: AIMster post# 24013

Wednesday, 07/25/2007 2:03:35 PM

Wednesday, July 25, 2007 2:03:35 PM

Post# of 47172
Got a question about CEFs premiums/discounts in general.

The CEF share price will differ above or below the value of the underlying stocks in the fund's portfolio (NAV) creating a premium or discount. So far, so good.

Now then, the portfolio manager charges expenses, etc. which adds a layer of expenses to the value of the underlying stocks (NAV). Therefore, it seems to me that any CEF where the NAV is trading at current value should always be selling at a premium.

Or, is my math off here?

Thanks,

Ray
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