Closed-End Fund Upgrades and Downgrades

Closed-end funds receiving recent promotions of at least a full grade level by TheStreet.com Ratings outnumbered those demoted by a similar magnitude by a margin of 11 to seven.

A possible harbinger that a bottoming is in sight for the troubled real estate and mortgage industries is that two funds from each were recently upgraded. The RMR Real Estate Fund(RMR Quote) and the Cohen & Steers Total Return Realty Fund(RFI Quote) each improved from grades in the D range, which equates with "sell" recommendations, to "hold"-recommended marks in the "C" range.

Similarly, mortgage-focused funds First Trust/FIDAC Mortgage Income Fund(FMY Quote) and BlackRock Income Trust(BKT Quote) each improved from TheStreet.com Ratings grades in the "C" to marks in the "B" area, elevating the two funds from "hold" to "sell" recommendations.

As the securities markets determined that Turkey's moderately anti-secular government wouldn't inhibit the nation's continuing economic growth, the Turkish Investment Fund (EVX Quote) was elevated from a grade of E-plus to a mark of C-minus. The only other foreign-focused fund on the "most improved" list, the BlackRock International Growth & Income Trust(BGY Quote), moved from a rating of E to a D.

As evidence of lingering aftershocks from the credit crunch is witnessed, four municipal bond funds are among the seven funds in the "most deteriorated" section of the table. Plagued by a now-resolved threat to their state tax-exempt status as well as credit downgrades to bond insurers, the muni sector experienced wild swings earlier in the year. While muni bonds have settled down recently, many closed-end funds that invest in that sector are leveraged, thus amplifying any remaining price fluctuations.

The Thai Fund(TTF Quote), which tumbled from a grade of C-minus to a D-minus, didn't fare as well as the Turkish offering.

LARGEST RECENT CLOSED-END FUND RATINGS GRADE CHANGES
NAME, TICKER & TheStreet.com RATINGS CURRENT GRADE	PREV. RATINGS GRADE	NEW STATUS	PREV. STATUS	3-MO. TOTAL TER'N (%)	12-MO. TOTAL TER'N (%)
MOST IMPROVED
Nuveen Mlt-Cur Sht-Tm Govt Inc (JGT) A	B-	Buy	Weak Buy	3.06	16.08
Small Cap Premium & Dividend Income (RCC) C-	E+	Hold	Sell	-0.10	0.16
Turkish Investment Fund (TKF) C-	E+	Hold	Sell	-5.33	-11.47
Lazard World Div&Inc Fd (LOR) B	C	Buy	Hold	-2.00	-11.06
First Trust/FIDAC Mortgage Income (FMY) B	C	Buy	Hold	-1.19	11.06
Putnam Premier Income Trust (PPT) B+	C+	Buy	Hold	-2.03	-1.29
BlackRock Income Trust (BKT) B+	C+	Buy	Hold	-3.30	9.79
Cohen&Steers Adv Inc Realty Fund (RLF) C	D	Hold	Sell	-10.77	-9.62
RMR Real Estate Fund (RMR) C-	D-	Hold	Sell	-13.83	-14.31
Cohen&Steers Total Return Realty (RFI) C+	D+	Hold	Sell	-3.61	-3.01
BlackRock Intl Grth and Inc Tr (BGY) D	E	Sell	Strong Sell	-10.57	-3.45
MOST DETERIORATED
Tortoise North American Energy (TYN) E+	C+	Sell	Hold	-14.74	-7.33
Delaware Inv CO Muni Inc (VCF) C-	B	Hold	Buy	-0.74	0.34
Morgan Stanley NY Qual Muni Sec (IQN) B	A	Buy	Strong Buy	-2.86	-0.46
MFS High Yield Muni Trust (CMU) C+	B+	Hold	Buy	-7.47	-12.37
Van Kampen Sel Sector Muni (VKL) C+	B+	Hold	Buy	-3.64	-10.32
Clough Global Opportunities Fund (GLO) D	C	Sell	Hold	-7.25	1.31
Thai Fund (TTF) D-	C-	Sell	Hold	-21.99	-14.28
Source: TheStreet.com Ratings - Data as of 7/31/2008. For an explanation of our ratings, click here.