Worst Performer CEFs
These worst performers are selected based on its market price performance for the past 5 years (up to August 5th, 2012). They may also have high expense ratio and worst management. These closed end funds (CEFs) can be categorized into domestic stock funds, high yield bond funds, international stock funds, world stock funds, etc.
The 10 worst performer closed end funds of 2012 for the past 5 years are:
 |
| Closed End Funds |
- RENN Global Entrepreneurs (RCG)
- Guggenheim Enhanced Equity Strategy (GGE)
- Helios Strategic Income (HSA)
- Helios Multi-Sector High Income (HMH)
- Equus Total Return (EQS)
- Helios High Income (HIH)
- Helios Advantage Income (HAV)
- New Ireland Fund (IRL)
- Templeton Russia & East European (TRF)
- Alpine Total Dynamic Dividend (AOD)
1. RENN Global Entrepreneurs (RCG)
RENN Global Entrepreneurs fund objective is to provide current income and long term capital growth. It uses its assets to purchase a portfolio of emerging growth company securities, convertible preferred stock and convertible bonds. Russell Cleveland is the fund manager since 1996. The current market price is trading 29.44% discount to its net assets value (NAV) as of August 5th, 2012. It also has a high annual expense ratio of 4.39%.
This worst performer fund has returned -26.49% over the past 5 year and -10.15% over the past 10 year. The top 3 holdings are Acadia Healthcare Company Inc, Anchor Free Inc (Series A convertible P), and Integrated Security Systems Inc.
2. Guggenheim Enhanced Equity Strategy (GGE)
Guggenheim Enhanced Equity Strategy fund invests mainly in dividend paying or other income producing securities of undervalued companies. It has $96 million of assets. The current distribution rate is 7.28%. This dividend yield is paid quarterly.
More: Best Closed End Funds of 2012
It has a 5 year average return of -25.19%. The top 3 holdings are SPDR S&P 500, iShares Russell 2000 Index, and PowerShares QQQ.
3. Helios Strategic Income (HSA)
The investment aim of Helios Strategic Income fund is to seek current income and capital appreciation by investing in bonds and stocks. The fund yield is 6.74%. The total expense ratio is 2.69%. Brookfield Investment Management Inc is the fund sponsor.
This worst performer high yield bond CEF has a 5 year annualized return of -25.15%. The fund has an average duration of 5.65 years.
5. Equus Total Return (EQS)
Equus Total Return fund utilizes its assets to buy the debt and equity securities of small capitalization companies. Sam P Douglass has managed this closed end fund since 1992. The total assets are $41 million. The inception date is September 11, 1992.
MORE: Worst Performing Stock Mutual Funds
This domestic stock fund has returned -20.19% over the past 5 year and -4.24% over the past decade. Some of the holdings include The Bradshaw Group, ConGlobal Industries Holding Inc, Infinia Corporation, Orco German S.A., etc.
8. New Ireland Fund (IRL)
New Ireland Fund is an international stock closed end fund. This CEF invests most of its assets in stocks and bonds of Irish companies from technology, telecommunications, and healthcare sectors. Noel O'Halloran is the current manager since July 2011. It has expense ratio of 2.22%. The fund sponsor is Kleinwort Benson Investors International Ltd.
Morningstar has ranked this worst performer fund with 2 star rating. This fund has its worst performance in 2008 with -65.09%. The annual portfolio turnover rate is 23%. The top 5 stocks are CRH PLC, Ryanair Holdings PLC, Kerry Group PLC, Aryzta AG, and Dragon Oil PLC.
Disclosure: No Position
Fund Performance
| No | Fund Description (Ticker) | Fund Type | Market Return | Lipper Rating | Premium / Discount | Expense Ratio | Yield |
|---|---|---|---|---|---|---|---|
| 1 | RENN Glbl Entrepreneurs (RCG) | Global | -26.51% | 96 | -29.44% | 5.25% | 0.00% |
| 2 | Guggenheim Enh Eq Strat (GGE) | Domestic Stock | -25.19% | 96 | -11.04% | 2.23% | 7.41% |
| 3 | Helios Strat Income (HSA) | High Yield | -25.04% | 98 | -7.84% | 2.69% | 6.90% |
| 4 | Helios Multi-Sec Hi Inc (HMH) | High Yield | -24.24% | 95 | -1.29% | 2.63% | 8.14% |
| 5 | Equus Total Return (EQS) | Domestic Stock | -21.23% | 92 | -31.80% | 10.60% | 0.00% |
| 6 | Helios High Income (HIH) | High Yield | -20.12% | 93 | 3.40% | 2.70% | 8.08% |
| 7 | Helios Advantage Income (HAV) | High Yield | -19.68% | 90 | -0.33% | 2.48% | 8.26% |
| 8 | New Ireland Fund (IRL) | Developed Market | -13.65% | 93 | -12.75% | 2.22% | 0.27% |
| 9 | Templeton Russia & E Eur (TRF) | Emerging Markets | -13.34% | 95 | -9.63% | 1.59% | 0.00% |
| 10 | Alpine Tot Dynamic Div (AOD) | Global | -12.35% | 96 | -8.28% | 1.35% | 15.83% |
| 11 | Virtus Total Return (DCA) | Global | -11.25% | 91 | -12.26% | 1.38% | 4.83% |
| 12 | Alpine Glbl Dynamic Div (AGD) | Global | -10.82% | 87 | 10.89% | 1.39% | 13.46% |
| 13 | Pyxis Credit Strat (HCF) | High Yield | -10.33% | 88 | -10.41% | 3.15% | 6.69% |
| 14 | Morg Stan East Europe (RNE) | Emerging Markets | -10.01% | 90 | -10.21% | 2.01% | 0.00% |
| 15 | European Equity Fund (EEA) | Developed Market | -9.62% | 77 | -8.32% | 1.60% | 2.21% |
| 16 | RMR Real Estate Income (RIF) | Real Estate | -9.34% | 91 | -13.63% | 2.78% | 7.34% |
| 17 | Herzfeld Caribbean Basin (CUBA) | Emerging Markets | -9.23% | 85 | -11.91% | 2.66% | 0.90% |
| 18 | Cornerstone Total Return (CRF) | Domestic Stock | -9.04% | 87 | 16.39% | 1.88% | 19.61% |
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