The evaluation method of closed-end fund performance is similar to other types of funds, mainly depending on the historical performance and past operation records of the fund. In order to examine the performance of the fund, investors should refer to several indicators, specifically, the net value of the fund, the accumulated net value and the historical dividend record of the fund.
The net value and accumulated net value of closed-end funds are the same as those of open-end funds. The net fund value represents the amount of assets currently represented by the fund unit; Cumulative net value represents the total value created by each fund unit since the issuance of the fund, which is the sum of the current net value of the fund and the total historical dividends.
Fund net value and accumulated net value can help investors analyze the profitability of funds. The higher the net value of a fund, the more assets it represents and the higher the value of the fund. If two funds are established at the same time, if the cumulative net value of one fund is higher, it means that this fund has gained more income in history, and this income ability is likely to continue in the future fund operation process.
In addition to the net value of the fund and the net value of expenses, the dividend of the fund is also an important indicator reflecting the profitability of the fund. The large dividend ratio of the fund shows that the fund is operating well, with abundant funds and long-term value-added ability.
For closed-end funds that cannot be redeemed freely, funds have very important value. Therefore, before each fund performance report is published, those foundations with great dividend potential and good dividend history are enthusiastically sought after, leading to an increase in their transaction prices.