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Closed-End Funds With Biggest Ratings Changes

Kevin Baker

The most-improved closed-end fund this month is the ING Global Equity Dividend & Premium Opportunity Fund(IGD Quote - Cramer on IGD - Stock Picks). The fund was upgraded to a rating of C, or hold, from a rating of E+, or sell.

Positive returns for March of 11.68% from General Electric(GE Quote - Cramer on GE - Stock Picks), 11.53% from Fording Canadian Coal Trust(FDG Quote - Cramer on FDG - Stock Picks) and 11.02% from HSBC Holdings PLC(HBC Quote - Cramer on HBC - Stock Picks) helped this fund rebound, landing in the middle of the fund-rating pack over the long run.

In second place among closed-end funds on our most-improved rating list is the Cohen & Steers Quality Income Realty Fund(RQI Quote - Cramer on RQI - Stock Picks), also moving up five notches to a rating of C from E+. This fund is 97% invested in REITs, with nearly 96% of its assets in U.S. securities.

The top three performing holdings: HCP(HCP Quote - Cramer on HCP - Stock Picks), up 15.87%; Senior Housing Properties Trust(SNH Quote - Cramer on SNH - Stock Picks), up 11.43%; and Nationwide Health Properties(NHP Quote - Cramer on NHP - Stock Picks), up 11.28% are all health-care REITs less affected by the overall economy.

The most-deteriorated list includes funds being downgraded to hold from buy, as well as funds sliding to sell from hold. The two largest falls in March closed-end ratings were both four notches down.

Dropping to a sell rating of D-, the Clough Global Equity Fund(GLQ Quote - Cramer on GLQ - Stock Picks) lost 3.12% in March. Its worst-performing holding in March, Nine Dragons Paper Holdings(NDGPF Quote - Cramer on NDGPF - Stock Picks) plunged 54.79%. The company's first-half profit margin shrank as recycled-paper costs, needed to make their containerboard, rose.

Other sore spots included March declines of 35.58% from Delta Air Lines(DAL Quote - Cramer on DAL - Stock Picks), 35.41% from Anworth Mortgage Asset(ANH Quote - Cramer on ANH - Stock Picks) and 34.88% from Uranium One(SXRZF Quote - Cramer on SXRZF - Stock Picks).

Another fund being severely downgraded for underperforming on risk-adjusted return is the Nuveen Connecticut Dividend Advantage Municipal Fund 3(NGO Quote - Cramer on NGO - Stock Picks). Being exempt from regular federal and Connecticut income tax is of no benefit if the fund loses money in the long run.

For an explanation of our ratings, click here.