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| Corporate High Income Closed End Funds |
| Closed End Funds A fund with a fixed number of shares outstanding, and one which does not redeem shares the way a typical mutual fund does. Closed-end funds behave more like stock than open-end funds: closed-end funds issue a fixed number of shares to the public in an initial public offering, after which time shares in the fund are bought and sold on a stock exchange, and they are not obligated to issue new shares or redeem outstanding shares as open-end funds are. The price of a share in a closed-end fund is determined entirely by market demand, so shares can either trade below their net asset value ("at a discount") or above it ("at a premium"). also called closed-end investment company or publicly-traded fund. Listed below are Closed End Funds that invest PRIMARILY in HIGH YIELD CORPORATE DEBT, although they may hold common and preferred shares generally in minor quantities Note that the funds listed invest in the bonds of company that generally are mid to lower grade companies, although a number of them also hold some high grade bonds. Also note that these trade based on 'supply and demand' versus net asset value---thus they trade at a discount or premium to the underlying bond portfolio value. You should note that there is some level of volatility in the prices of these securities and that price range will generally be narrowest when interest rates in general are relatively stable. As with any bond the net asset value of these funds will go up if interest rates in gereral are falling and the net asset value will go down if interest rates in general are rising. You will note that generally these closed end funds are 'sponsored' by an investment management firm (such as Blackrock) and that these firms get a 'managment fee' for their services of managing the portfolio. Generally this is a modest amount (if it is too high--ie. 2-3% the dividend will be hurt) of less than 1% of assets. These funds are a good way to get a very good yield while getting the diversification needed in a high income portfolio. While having an opportunity for capital gains (or losses) as well, These trade just like stocks and may be bought and sold in the same manner and for the same commission. The Funds Listed Below are all Taxable Funds (No Tax Exempt Securities) |
| Listed below are Closed End Fund Issues These are NOT recommended purchases, but are just informational. You must do additional due diligence to find investments suitable to your needs and style. Information Current as of 1/13/2008 |
| Updated 1/13/2008 |
| These securities pay monthly income (L) behind the name indicates a leveraged fund |
| Security Name Blackrock Debt Strategies Fund Blackrock High Income Shares Blackrock Senior High Income Fund (L) Rivus Bond Fund Blackrock Strategic Bond Trust Blackrock High Yield Trust DWS High Income Trust Dreyfus High Yield Strategies Fund Colonial Intermediate High Yield Fund Lehman Bros First Trust Income Opp (L) Morgan Stanley High Yield Fund Pimco Corporate Income Fund Pimco High Income Fund (L) Prospect Sheet High Income Portfolio Van Kampen High Income Trust II (L) Western Asset Zenix Income Fund (L) |
| Ticker DSU HIS ARK BDF BHD BHY KHI DHF CIF LBC MSY PCN PHK PHY VLT ZIF |
| Recent Price 5.85 2.10 5.39 17.73 11.62 6.54 6.33 4.35 3.56 15.20 5.99 16.36 16.13 3.21 4.07 3.01 |
| Recent Yield 10.9% 10.3% 10.4% 6.5% 7.8% 9.4% 8.34% 7.92% 8.32% 8.68% 6.01% 7.79% 9.07% 8.52% 8.11% 8.37% |
| Premium/ Discount 6% -4% 4.87% -9.43% -6% -1% 5% -8% -7% 1% -12% 12% 6% -5% -6% -2% |
| 52 Week Range 4.75-7.78 1.86-2.72 4.5-6.70 16.24-18.64 10.40-13.29 5.33-8.70 5.87-7.84 3.90-4.53% 3.18-3.59 13.34-15.60 5.49-6.15 14.32-16.61 14.62-16.26 3.04-3.41 3.67-4.65 2.64-3.09 |
| Major Holdings El Paso Corp, Charter Comm, Equistar Chem Cablevision Systems, Lyondell Chem, Intelsate, Bowater Federal Home Loan, RH Donnally, Navistar Nalco, AES, Tenet Healthcare, Dow Jones HCA, Ford Motor Credit Co, GMAC Tyco, Continental Airlines, Time-Warner Chiquita Brands, MagnaChip Semi, Suncom Wireless GMAC, Sprint Capital |
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