Here's this month's scenario, which focuses on using closed-end funds and was discussed with Michael R. Kelly, CFP, EA of Baltimore:
Clients (married couple) are in their mid-40s with $100,000 available to invest, seeking diversification and long-term growth, and are willing to accept moderate volatility.
What research tools do you use to identify prospective funds for clients?
I rely primarily on Morningstar Principia and Hertzfield's Guide to Closed-End Funds, a monthly newsletter.
What specific fund categories would you recommend for the scenario-clients' consideration?
Cash: 5 percent; Fixed income: 27 percent; Equity: 58 percent; Eclectic: 10 percent.
What specific funds and allocations would you recommend within those categories?
Cash: Taxable money market fund
Fixed income:
| Fund | % of Portfolio |
| BlackRock Credit Allocation Income Trust (BTZ) | 5 |
| Bancroft Fund (BCV) | 5 |
| AllianceBernstein Income Fund (ACG) | 6 |
| First Trust Strategic High Income Fund (FHI) | 6 |
| Nuveen Tax-Advantaged Floating Rate Fund (JFP) | 5 |
Equity:
| Fund | % of Portfolio |
| Boulder Growth & Income Fund (BIF) | 7 |
| Morgan Stanley Frontier Emerging Markets Fund(FFD) | 6 |
| NFJ Dividend, Interest & Premium Strategy Fund (NFJ) | 6 |
| DCW Total Return Fund (DCW) | 5 |
| Central Securities Corp. (CET) | 6 |
| Royce Value Trust (RVT) | 5 |
| Alpine Total Dynamic Dividend Fund (AOD) | 7 |
| Tortoise Capital Resources Corp. (TTO) | 6 |
| RMR Asia Pacific Real Estate Fund (RAP) | 6 |
| Aberdeen Australia Equity Fund (IAF) | 4 |
Eclectic:
| Fund | % of Portfolio |
| The Gabelli Global Deal Fund (GDL) | 5 |
| Guggenheim Enhanced Equity Income Fund (GPM) | 5 |
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