Closed End Fund #4: AllianceBernstein Income Fund
Distribution Rate: 5.9%
Expense Ratio: 0.58%
Another solid option is the AllianceBernstein Income Fund (ACG). If you like size and safety (and are willing to roll with more subdued returns), this closed end fund is a good bet.
The ACG closed end fund invests principally in U.S. government bonds, with assets around $2 billion. One of the big benefits here, however, is that ACG is trading at a 14% discount to its underlying assets — kind of like getting a sale on Treasuries.
The fund is adeptly managed by Paul DeNoon, Alliance Bernstein’s SVP and director of emerging market debt. It has a distribution rate of 5.9%, while its 0.58% expense ratio last year was the lowest in the closed end fund peer group .
Year-to-date, ACG is down 8%, but the closed end fund has returned over 9% per year since inception.
One thing to note: It is leveraged at 47% — the highest on this list.