Daily Worst Performer Closed End Funds CEF on Oct 17 2011

Looking into the worst performer funds may provide additional insight for investor. The worst performer closed end funds for October 17th, 2011 are Turkish Investment Fund, Dreyfus Strategy Municipal Bond, Royce Micro-Cap Trust, and more. These funds are rated based on its performance on October 17th, 2011 (Monday).

About Closed End Funds

Closed End Funds are the opposite of mutual funds or open end funds. Closed End Funds are traded like stocks or ETFs on stock exchanges (NYSE, Nasdaq, AMEX). They can be traded during market day at any time. Their market price can be traded either premium or discount to their NAV. Some of these funds may use leverage to enhance the fund’s performance or return.

Worst Performers

The 11 Worst Performer CEFs on October 17, 2011 are:
Daily Worst Performer CEFs
  1. Turkish Investment Fund (TKF)
  2. Dreyfus Strategy Municipal Bond (DSM)
  3. Dreyfus Municipal Income (DMF)
  4. J Hancock Bank & Thrift (BTO)
  5. Royce Micro-Cap Trust (RMT)
  6. Source Capital (SOR)
  7. Western Asset High Yield Defined Opportunities (HYI)
  8. Aberdeen Latin America (LAQ)
  9. Latin American Discovery (LDF)
  10. Morgan Stanley Eastern Europe (RNE)
  11. Cohen & Steers Total Return Realty (RFI)
updated on 10/18/2011

Observation from the list:
  • Majority of emerging markets stock funds are underperformed for today
  • Dreyfus municipal funds are among the underperformer funds.
  • Financial and Real Estate sector equity funds are under performers as well.
1. Turkish Investment Fund (Ticker: TKF)

The Turkish Investment fund objective is to achieve long term capital appreciation by investing in Turkish companies stocks. The fund has total net assets of $109 Million. The total annual expense ratio is 1.08%. The fund’s sponsor is Morgan Stanley Investment Management Inc. The fund’s managers are Eric Carlson and Paul Psaila. As part of Emerging Markets Equity CEF, this TKF fund has a dividend yield of 1.57%. This distribution rate is paid annually.

Based on 1 year return, the Lipper currently rank this fund in 95% (1% = best and 100% = worst). The fund’s market price is 10.08% lower than the fund’s NAV. The fund’s market price year-to-date return is -20%. The fund has returned 20.06% over the past 3 year, and 2.05% over the past 5 year.

Top Performing National Municipal Bond CEFs June 2011

The fund’s currently has 23 holdings in its assets. The top 10 stocks are Turkiye Garanti Bankasi A.S., Turk Telekomunikasyon, Anadolu Efes Brewery ve Malt Sanayi A.S., Coca Cola Icecek Sanayi A.S., Tupras-Turkiye Petrol Rafineleri A.S., Yapi Ve Kredi Bankasi, Turkiye Vakiflar Bankasi TAO, Akcansa Cimento Sanayi Ve Ticaret A.S., Turkiye Halk Bankasi A.S., Turkcell Iletisim Hizmetleri AS, Msilf Money Market Portfolio Msilf Money 0.20 (31 Dec 2030). The top 5 sectors are commercial banks (34.08%), Beverages (18.71%), Construction Materials (8.65%), Oil Gas & Consumable Fuel (8.5%), and Diversified Telecommunication (8.15%).

Note: NAV = Net Asset Value

2. Dreyfus Strategy Municipal Bond (Ticker: DSM)

Dreyfus Strategy Municipal Bond fund invests majority of its asset in investment grade municipal bonds. The fund will provide income that is not subjected to federal income tax. James Welch is the fund’s manager since 2001. This Muni Bond CEF has total net assets of $537 million. The expense ratio is 1.16% per year (including baseline expense and interest expense). This fund is considered as leverage muni bond fund. The fund distribution rate is 6.83%.

This DSM fund has returned 6.29% over the past 1 year, 21.51% over the past 3 year, and 5.48% over the past 5 year. Based on its 10 year market return, the Lipper percentage ranking is 83%. The past 3 year performance is as follow:
  • Year 2010: 5.48%
  • Year 2009: 48.20%
  • Year 2008: -24.15%
As of July 2011, the top 10 sectors are Transportation (17.31%), Education (9.23%), Utility-Electric Revenue, Housing, Resource Recovery, Utility-Water and Sewer, Industry Revenue, Pollution Control, and Lease Revenue (2.1%).

3. Dreyfus Municipal Income (Ticker: DMF)

Dreyfus Municipal Income fund objective is to seek high current income exempt from Federal income tax with capital preservation. This muni bond fund will invest in municipal bonds, industrial development bonds. The fund is managed by Joseph P Darcy. The total net assets are $264 Million. It also has an expense ratio of 1.35%. The fund’s dividend yield is 6.62% (after tax). Based on 35% tax rate, the taxable equivalent yield is 10.18% (no state tax is assumed in calculation).

Top Performing Option Strategies Equity CEFs June 2011

As of October 17, 2011, the fund has returned 21.51% over the past 3 year and 7.51% over the past 5 year. This muni bond fund has an average duration of 9.60 years and average maturity of 19.10 years. The annual portfolio turnover is 18%.

As of July 2011, the top 8 sectors of this bond fund are Health Care, Transportation, Education, Utility- Water & Sewer, Utility-Electric Revenue, Housing, Resource Recovery, and Pollution Control.

4. J Hancock Bank & Thrift Opportunity

As part of sector equity fund, this John Hancock Bank & Thrift Opportunity invests most of its assets in US Regional Banks, thrifts, and related holding companies stocks. This stock fund’s manager is Lisa Welch. The fund’s net assets are $296 Million. It also has an expense ratio of 1.34%. The fund’s distribution rate is 6.58%. This dividend is distributed quarterly.

Top Preferred Stock Closed End Funds

The fund’s performance for the past 4 year:
  • Year 2010: 29.50%
  • Year 2009: 8.93%
  • Year 2008: -35.77%
  • Year 2007: -23.11%
  • Year 2006: 20.97%
Majority of the fund assets are being hold in Financials sector (98.58%). The top 10 stocks holdings are: JPMorgan Chase & Co, Wells Fargo & Co, PNC Financial Services Group Inc, Bank of New York Mellon, Cullen Frost Bankers, Inc, SVB Financial Group, BB&T Corp, Bank of America Corporation, Zions Bancorporation, East West Bancorp Inc, and F.N.B. Corporation.

5. Royce Micro-Cap Trust (Ticker: RMT)

Royce Micro-Cap Trust fund invests primarily in companies with market capitalizations <$300 Million, non-Micro cap companies, equity securities and non-convertible debt securities. The fund’s expense ratio is 1.12%. It also has total net assets of $341 Million. The fund has a dividend yield of 6.29%.

As of July 2011, the top 6 countries in this closed end fund are USA, Canada, China, South Korea, Italy, UK. The fund’s top 10 holdings are: State Street Bank & Trust Company, Miscellaneous, Kennedy-Wilson Holdings, Inc., Sapient Corporation, Tennant Company, Epoch Holding Corporation, Richardson Electronics, Raven Industries, Inc., Drew Industries, Inc., America's Car-Mart, Inc., and PMFG, Inc.

Disclosure: No position

Fund Information

NoFund Description (Ticker)Fund Category1 Day ReturnLipper RankPremium / DiscountExpense ratioDistribution YieldAdvisor
1Turkish Investment Fund (TKF)Emerging Markets-4.09%95-10.53%1.09%1.56%Morgan Stanley Investment Mgmt Inc
2Dreyfus Strat Muni Bond (DSM)General Muni Levgd-4.08%99-0.62%0.81%6.60%Dreyfus Corporation
3Dreyfus Muni Income (DMF)General Muni Levgd-3.38%98-1.08%1.35%6.49%Dreyfus Corporation
4J Hancock Bank & Thrift (BTO)Sector Equity-3.38%98-11.43%1.36%7.27%John Hancock Advisers LLC
5Royce Micro-Cap Trust (RMT)Core Funds-3.37%97-14.82%1.12%6.15%Royce & Associates LLC
6Source Capital (SOR)Core Funds-3.20%93-13.21%0.98%6.86%First Pacific Advisors LLC
7Western Asset Hi Yld D O (HYI)High Current Yield-3.17%88-0.41%--8.88%Legg Mason Partners Fund Advisor LLC
8Aberdeen Latin America (LAQ)Emerging Markets-3.08%90-8.24%1.35%2.98%Aberdeen Asset Management Inc
9Latin American Discovery (LDF)Emerging Markets-3.03%85-7.88%1.38%7.34%Morgan Stanley Investment Mgmt Inc
10Morg Stan East Europe (RNE)Emerging Markets-2.93%80-12.61%2.01%0.00%Morgan Stanley Investment Mgmt Inc
11Cohen & Steers TR Rlty (RFI)Real Estate-2.87%91-4.75%0.96%14.35%Cohen & Steers Capital Management Inc

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