Central Fund of Canada fund objective is to provide in alternative investment vehicle to investors interested in exposure to commodities through holding in gold bullion and silver bullion. The fund investment policy required the fund to maintain a minimum of 90% of its net assets in gold and silver bullion of which at least 85% must be in physical form.
Central Fund of Canada Fund Fact
- Category: US Equity-Commodities
- Fund Sponsor: Central Group Alberta Ltd
- Portfolio Managers: J C Stefan Spicer (14 Sep 1983)
- Ticker: CEF
- NAV Ticker: XXCEFXX
- Average Daily Volume (shares): 1,323,000
- Average Daily Volume (USD): $24.449M
- Inception Date: 9/14/1983
- Inception Share Price: $10.55
- Inception NAV: $9.98
- Fiscal Year End: October 31
As April 26th 2011, the Top 4 sectors are Gold Bullion (51.85%), Silver Bullion (46.12%), Net current Asset (2%), and short term debt (0.01%). As April 26th 2011, the fund market price ($23.77) is currently traded at 1.12% discounts from the fund’s Net Asset Value (NAV: $24.04).
Several advantages in investing in this fund:
- It is easy. Hence this CEF is traded like stock on the open market, anyone can trade this closed end fund (CEF)
- No bullion contract, logistic, storage fee, insurance for share owners
- No fee to trade this CEF except your brokerage fee
- All the gold and silver bullion is stored in treasury vaults at Canadian chartered bank
- It is available to anyone in North America
- Investment and market risk
- Credit risk
- Non diversification risk
- Commodities price risk
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