Discount Narrowing

Discount narrowing is a change in which a fund’s market-price discount to net asset value becomes smaller.

Why this matters to income investors

A closing discount can add price return without changing distributions.

How to use discount narrowing in your research

Compare the cash distribution with the fund’s reported income, gains, and net asset value over several periods. Check the source and sustainability of the payment rather than relying on its quoted rate.

This material is general education and information, not individualized investment, tax, or legal advice.