| The Yield Hunter Let's make some money and sleep well at night |
| Corporate Preferred Securities 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 Corporate Preferred shares.although they may hold other securities in a minor quantity Note that the funds listed invest in preferred hares of companies that generally are mid to higher grade companies 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 portfolio value. You should note that there is some level of volatility in the prices of these securities and that the price range will generally be narrowest when interest rates in general are relatively stable. As with any yielding asset the net asset value of these funds will go up if interest rates in general 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. 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 4/13/2007 |
| Updated 4/13/2007 |
| These securities pay monthly income |
| Security Name Blackrock Preferred Income Strategies Blackrock Preferred Opportunity Trust Flaherty and Crumrine Preferred Sec Inc Fund Flaherty and Crumrine Preferred Income Flaherty and Crumrine Preferred Income Opp John Hancock Preferred Income II John Hancock Preferred Equity Income John Hancock Patriot Preferred Div Fund Nuveen Quality Preferred Income 3 (L) Nuveen Quality Preferred Income 2 (L) Nuveen Preferred and Convertible Income (L) Nuveen Quality Preferred Income Fund (L) |
| Ticker PSY BPP FFC PFD PFO HPF HPI PPF JHP JPS JPC JTP |
| Recent Price 20.86 26.92 21.90 17.30 12.38 24.52 24.59 13.53 14.58 14.59 14.07 14.16 |
| Recent Yield 6.59% 7.43% 6.99% 5.97% 6.3% 7.59% 7.56% 6.49% 7.49% 7.65% 8.06% 7.61% |
| Premium Discount -6% 10% -6% 10% -1% 0% 0% -8% 2% 0% -2% 1% |
| 52 Week Range 18.59--21.57 24.58-26.99 19.01-22.20 14.86-17.75 10.61-12.70 21.56-25.90 21.55-25.90 11.78-13.85 12.62-15.18 13.00-15.59 11.91-14.47 12.50-14.90 |
| Major Holdings FHLB, Bank of Am, Metlife Wachovia, ING Groep, Union Planters Wachovia Corp, ING Groep, Washington Mutual Banco Santander, JP Morgon Chase |
| (L) after the fund name indicates the fund leverages the portfolio for higher returns |