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This Quiet Shift Could Drive 20%+ Gains In CEFs In 2023

Closed-End Fund

There’s a quiet shift happening in closed-end funds (CEFs)–and it’s primed to give those who buy now some very nice upside in 2023.

And that’s in addition to the rich 7%+ dividends CEFs hand us.

That trend is a shift toward share buybacks, which you likely know about from the stock world. Buybacks work similarly with CEFs, but with an extra punch: they keep CEFs’ discounts to net asset value (NAV) from getting too wide–and they can even narrow those discounts, slingshotting the share price higher as they do.

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This post originally appeared at Contrarian Outlook.