Premium

At A Premium

Premium is one of those words that has a fair number of meanings.  It can be what you pay for an insurance policy.  It is a type of gas. It can mean of highest quality.  But it can also mean "more expensive".

As my readers know, I have been a fan of closed end funds.  And frankly, I have done VERY well with them  One can buy a closed end fund at either a discount or a premium to it's net asset value.  As a buyer, it seems self-evident that you would like to buy at a discount.  I suppose the inverse of that is that as a seller, you would like to sell at a premium.

Here are my 5 CEFs:

Stock	Shares	Avg Cost	Current Price	Dividends Received	Pct Change	R3K Change	Diff
AOD	10,068	3.90	3.96	270.00	2.3%	0.9%	1.4%
BHK	2,270	12.79	14.75	3,118.18	26.1%	11.7%	14.4%
CSQ	5,519	8.29	10.28	6,001.20	37.1%	28.8%	8.3%
JQC	4,251	9.13	10.29	5,253.77	26.3%	12.5%	13.8%
KMF	1,873	22.08	32.27	4,453.63	56.9%	25.1%	31.8%

Not too shabby!  I went to CEFConnect  which is my go to source for info on closed end funds.  I was surprised to see that JQC and KMF are both selling at a premium.  KMF is about +1%, while the average for it is -3%. JQC is at +2.8%, with a longer term average of -3.3%.  A six percent swing seems pretty wide to me.  I have not decided what to do about this.  JQC and KMF have been staples of my dividend portfolios.  I also have very large capital gains, and a sale would have significant tax implications.  I am tempted to sell JQC.  There is a sister fund, JRI, that I have had my eye upon. It trades at a 7% discount.

Not much other news. Tough sledding yesterday, my portfolio was down 90 basis points.  The Bear, she is not so much fun!  I fly back to the states today.  Be good to get home!