Morningstar Solutions
Morningstar Solutions
CEF Solutions Center Overview
Slide 2: CEF Solutions Center Overview

We have designed and written our closed-end fund (CEF) Solutions Center materials for a broad range of audiences: from investors who have never invested in CEFs before, to those who use them as portfolio staples.

The Solutions Center is a dynamic line-up of educational presentations aimed at making our readers more proficient CEF investors. Over time, we will expand the Solutions Center lineup to address your questions.

Slide 3: CEF Solutions Center Overview

There are three levels of presentations:

  • CEF Basics: These are directed toward investors who are not familiar with closed-end funds.
  • Before You Invest: These are directed toward investors with a passing knowledge of closed-end funds, but who haven't invested in them yet, or have invested very little. Understanding of CEF Basics is presumed.
  • CEF Investor: These contain more advanced or esoteric topics that will be of interest to seasoned CEF investors.

The following slides explain the levels in more detail.

Slide 4: CEF Solutions Center Overview

CEF Basics: Any investor with an interest in closed-end funds must understand the basic concepts before even considering investing through a CEF structure.

Basic concepts include:

  • Discounts and Premiums
  • Total Return, Yield, and Price Return
  • Return of Capital
  • Leverage
Slide 5: CEF Solutions Center Overview

Before You Invest: Once the basics are covered, it's important to understand some concepts in greater detail to avoid any hidden surprises that the closed-end fund structure could spring on you after you put your hard-earned dollars to work.

These concepts include:

  • How to use discounts and premiums to your advantage
  • Assessing whether your income will likely be sustainable
  • How your fund's leverage levels could affect its price
  • Finding information about your closed-end fund
Slide 6: CEF Solutions Center Overview

CEF Investor: These slides are written with the seasoned closed-end fund investor in mind. This series aim to help investors draw on the benefits of closed-end funds to enhance their overall portfolios and develop their own frameworks to assess the suitability of individual CEFs for their investment needs.

Topics include:

  • How to make rights offerings work for you
  • Is your board of directors acting as a true steward?
  • The ins and outs of various investment strategies
Accompanying Video
CEF Solutions Center Overview
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