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TBLD is trading at a 6.23% discount to NAV compared to its 52-week average discount of near 10%. It’s less than 5 years old. Close to 70% in equities. The 30% in bonds is mostly junk (BB / lower / unrated). To its credit it managed to lose only around 17% in 2022. Not bad considering the damage incurred by both equities and bonds that year.
Agree the ER is high for a fund not leveraged (and incurring interest expenses on borrowings). I’ll forgive a high ER on a CEF if it has a very long term record of success and is attractively discounted / priced. But this one doesn’t have those attributes. In defense of the ER, the fund does have more than 50% of its assets invested outside the United States which adds additional expense.
Comments
TBLD (7/27/21) is a newer kind of CEF with a limited term. It is not leveraged but is still volatile due to premium/discount.
Agree the ER is high for a fund not leveraged (and incurring interest expenses on borrowings). I’ll forgive a high ER on a CEF if it has a very long term record of success and is attractively discounted / priced. But this one doesn’t have those attributes. In defense of the ER, the fund does have more than 50% of its assets invested outside the United States which adds additional expense.