Younger Closed-End Funds Get Lousy Grades
TheStreet.com Ratings initiated coverage of eight closed-end funds that accrued a track record of at least one year of risk and performance data by the end of June.
None of the closed-end funds that opened for business in June of 2007 received our top rating level of Excellent. Not even one managed a rating of Good or even Fair. All of the newly rated closed-end funds performed poorly in relation to all the other exchange-traded and closed-end funds we rate.
The highest-ranked fund of the bunch is the D-rated Van Kampen Dynamic Credit Opportunities Fund (VTA). Capital appreciation is a secondary goal to generating current income. To that end, the fund is paying out monthly installments at current 12-month yield of 11.66% that has mitigated some of the loss over the last year from investing in loans and other debt instruments.
Ranked slightly worse, at D-minus, is the Nuveen Tax-Advantage Dividend Growth Fund (JTD). This fund pays income quarterly, currently yielding 11.55%. Top holdings include Equitable Resources (EQT), Yum! Brands (YUM), AT&T (T) and Chevron (CVX).
Research MethodologyTheStreet.com Ratings condenses the available fund performance and risk data into a single composite opinion of each fund's risk-adjusted performance. This allows the unbiased identification of those funds that have historically done well and those that have underperformed the market. While there is no guarantee of future performance, these investment ratings provide a solid framework for making informed, timely investment decisions. The funds listed below have all reached their one-year anniversary.
|Newly Rated Closed-End Funds|
|Fund (Ticker) Initial Rating||Inception Date||Total Return 1 Year||Total Return YTD||Objective|
|Van Kampen Dynamic Credit Opp (VTA) D||6/26/2007||-21.84%||-6.49%||Loan Participation|
|Nuveen Tax-Advantaged Dividend Grth (JTD) D-||6/26/2007||-19.03%||-5.42%||Growth & Income|
|Calamos Global Dynamic Income Fd (CHW) E+||6/26/2007||-19.35%||-9.31%||Global Equity|
|Delaware Enhanced Glb Div & Inc Fd (DEX) E+||6/29/2007||-27.05%||-6.80%||Global Equity|
|MLP & Strategic Equity Fund Inc. (MTP) E||6/26/2007||-24.48%||-1.06%||Sector - Energy/Natural Res|
|Dividend Capital Strategic Gbl Rlty (DCW) E-||6/26/2007||-45.14%||-16.31%||Growth & Income|
|DWS RREEF Wrld Real Est & Tac Stra (DRP) E-||6/26/2007||-32.49%||-8.40%||Growth & Income|
|Gabelli Healthcare & Wellness Trust (GRX) E-||6/28/2007||-21.33%||-12.41%||Sector - Health/Biotechnology|
|Source: TheStreet.com Ratings|
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