Closed End Fund #5: Source Capital
Distribution Rate: 4.7%
Expense Ratio: 0.86%
This final closed end fund is another non-leveraged option. Source Capital (SOR) has assets of $511 million, and the closed end fund invests primarily in equity and equity-related investments. It is managed by the savvy Rich Atwood, FPA’s managing partner and chief operating officer.
Plus, the SOR closed end fund is trading at a discount of nearly 10% and has a reasonable total expense ratio of 0.93%.
The total distribution rate of 4.7% is lower than other names on this list, but the closed end fund has steady returns to make up for that. SOR has climbed 22% year-to-date, and 29% over the last year.
As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.