Closed-End Fund Weekly Update August 5, 2011

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1 Closed-End Fund Weekly Update August 5, 2011 U.S. Equity Funds Guggenheim Enhanced Equity Strategy GGE announced a 150% increase to its quarterly distribution to $ per share from $0.125 per share. In addition, the fund announced that, at a meeting on Aug. 30, shareholders will vote on a proposal to approve a new subadvisory agreement with Guggenheim Funds Investment Advisors and Guggenheim Partners Asset Management. Cornerstone Total Return CRF $ % -7.0% $ JH Hedged Equity & Income Fund HEQ $ % -7.0% $ Duff&Phelps Global Utility Inc DPG $ % 0.0% $ Gabelli Utility Trust GUT $ % -8.2% $ ClearBridge Energy MLP CEM $ % -3.0% $1, BlackRock Real Asset Equity BCF $ % -10.6% $ Cohen & Steers Qty Inc Realty RQI $ % -11.8% $ Petroleum & Resources PEO $ % -10.9% $ Gabelli Equity Trust GAB $ % -10.4% $ Source Capital Inc SOR $ % -9.8% $ After the market took a dive yesterday, it's not surprising that of the five largest price gainers this week, only two funds posted actual gains: Cornerstone Total Return, up 0.8%, and John Hancock Hedged Equity & Income HEQ, up 0.5%. EV Risk-Mgd Divers Equity Inc ETJ -14.2% -11.0% -1.3% 11.6% Fid/Claymore MLP Opportunity FMO 1.1% 6.9% 9.9% 7.2% EV Enhanced Equity Income II EOS -10.7% -6.8% -1.7% 10.5% Energy Income & Growth FEN 0.5% 5.7% 7.8% 7.4% Kayne Anderson MLP KYN 8.0% 8.6% 12.7% 7.5% Liberty All-Star Equity USA -7.7% -11.1% -15.9% 7.5% Central Securities Corporation CET -12.8% -15.4% -18.0% 2.0% NFJ Div Interest & Premium NFJ -3.4% -4.4% -14.0% 10.6% SunAmerica Foc Alpha LargeCap FGI -2.5% -6.5% -11.3% 1.2% Liberty All-Star Growth ASG -4.4% -6.6% -13.4% 6.8% None of the relatively inexpensive equity funds are undervalued on a three-year view. Liberty All-Star Equity USA and Central Securities Corporation CET are overvalued on a three-year view. Note that SunAmerica Focused Alpha LargeCap FGI is on the list of relatively expensive funds as the board approved a proposal to open-end the fund. Shareholders are expected to vote on the proposal in December. If shareholders approve, the fund will likely open-end in January.

2 Morningstar Closed-End Fund Research 2 Global & International Equity Funds John Hancock Tax Advantaged Global HTY announced that Ram Willner no longer serves as a portfolio manager for the options overlay strategy, but the rest of the team remains the same. Thai Capital Fund Inc TF $ % -1.1% $ GDL Fund GDL $ % -3.2% $ ING Emerging Market High Div. IHD $ % -6.9% $ Aberdeen Emg Mkt Telecom Infra ETF $ % -3.6% $ Singapore Fund SGF $ % -3.1% $ New Germany Fund GF $ % -12.7% $ European Equity Fund EEA $ % -12.1% $ Alpine Total Dynamic Dividend AOD $ % -10.2% $1, Korea Equity Fund KEF $ % -6.9% $ ING Intl High Div Equity Inc IID $ % -8.6% $ Singapore Fund SGF announced approval of a new investment advisory agreement with Aberdeen Asset Management Asia Limited. The fund will be managed by Aberdeen's Singapore Equities team led by Hugh Young. International CEFs were even harder-hit than U.S. equity funds this week--not a single fund had a positive share price return. Asia Tigers Fund GRR -10.8% -5.6% -5.8% 0.8% China Fund Inc CHN -12.5% -9.4% -7.3% 2.0% JF China Region JFC -12.1% -11.6% -9.9% 0.2% MS Emerging Markets MSF -8.9% -9.2% -7.6% 0.6% India Fund Inc IFN -9.2% -5.2% -2.6% 0.3% Gabelli Dividend & Income GDV -8.0% -12.3% -15.2% 6.3% Ibero-America Fund SNF -3.6% -8.5% -12.1% 1.1% Swiss Helvetia Fund SWZ -8.4% -9.9% -14.3% 8.1% Alpine Global Premier Property AWP -9.2% -14.6% -16.8% 9.0% Shelton Greater China Fund TFC -0.1% -5.2% -8.3% 0.0% Asia Tigers GRR and China Fund CHN are statistically undervalued on a three-year view, in our opinion. Gabelli Dividend & Income GDV and Ibero-America Fund SNF are overvalued on a three-year view, in our opinion. Note that in mid-june, shareholders of Shelton Greater China Fund TFC approved the fund's conversion to an open-end fund structure, which accounts for the discount tightening.

3 Morningstar Closed-End Fund Research 3 Hybrid Funds John Hancock Tax Advantaged Dividend Income HTD announced that Ram Willner no longer serves as a portfolio manager for the options overlay strategy, but the rest of the team remains the same. TS&W/Claymore Tax-Advantaged Balanced TYW announced that it will not convert to an open-end fund at this time. Although the board accepted the proposal, the fund was unable to reach an agreement with the proposed open-end fund sponsor. The board will continue to pursue other courses of action, including openending with another sponsor. Flah&Crum Claymore Tot Return FLC $ % 0.4% $ JH Premium Dividend Fund PDT $ % -2.9% $ Nuveen Quality Preferred Inc 3 JHP $ % -0.1% $ RENN Glb. Entrepreneurs Fund RCG $ % 0.8% $9.2 7 Guggenheim Strategic Opp Fund GOF $ % -0.8% $ DCA Total Return Fund DCA $ % -6.9% $ AGIC Gbl Equity & Conv Income NGZ $ % -8.5% $ Advent Claymore Enh Grth & Inc LCM $ % -6.2% $ Lazard Glb Total Return & Inc LGI $ % -7.1% $ Advent Claymore Conv & Income AVK $ % -5.5% $ Bancroft Fund BCV -13.9% -12.8% -13.4% 3.2% First Opportunity Fund Inc. FOFI -25.3% -20.7% -19.6% 0.0% Nuveen Quality Preferred Inc 2 JPS -9.2% -7.2% -5.2% 8.3% Ellsworth Fund ECF -13.0% -12.1% -13.3% 3.5% Nuveen Quality Preferred Inc 3 JHP -9.1% -6.5% -5.5% 8.1% JH Tax-Advantaged Dividend Inc HTD -4.6% -8.9% -10.9% 7.4% TS&W/Claymore Tax-Adv Balanced TYW -3.9% -4.9% -11.1% 7.2% RENN Glb. Entrepreneurs Fund RCG -17.9% -22.7% -28.1% 0.0% Guggenheim Enhanced Eq. Strtgy GGE -5.1% -10.2% -15.2% 7.7% LMP Capital & Income SCD -7.2% -7.1% -16.4% 9.1% As usual, all of the hybrid funds are in the range of being fairly valued, on a three-year view, in our opinion.

4 Morningstar Closed-End Fund Research 4 Taxable Fixed-Income Funds American Select Portfolio SLA, American Strategic Income I ASP, American Strategic Income II BSP, and American Strategic Income III CSP announced changes to the amount of leverage employed. SLA can now borrow up to $15 million in a 180-day, revolving credit facility from Bank of America; ASP can borrow up to $7 million; BSP can borrow up to $16.25 million; and CSP can borrow up to $12.25 million. In addition, SLA, BSP, and CSP extended existing credit facility agreements with Massachusetts Mutual Life Insurance Company. Putnam Premier Income PPT announced a 15.7% decrease to its monthly distribution to $0.043 from $0.051 per share. Blackrock Build America Bond BBN $ % 8.9% $1, Fort Dearborn Income FDI $ % 4.3% $ Nuveen Build America Bond NBB $ % 6.8% $ JH Income Securities JHS $ % 1.3% $ Central GoldTrust GTU $ % 4.0% $1, Aberdeen Asia-Pacific Income FAX $ % -2.1% $1, Oxford Lane Capital Corp OXLC $ % 0.0% $ New America High Income Fund HYB $ % -0.2% $ Blackrock Resources & Commdty BCX $ % -6.8% $ Western Asset Global Partners GDF $ % -1.0% $ Taxable fixed-income CEFs performed well this week as investors fled equities for bonds and gold. The three gold CEFs performed noticeably better this week than the single silver CEF, Sprott Physical Silver PSLV, which lost 2% on share price this week. Central GoldTrust GTU gained 2.3%, Central Fund of Canada CEF lost 0.6%, and Sprott Physical Gold PHYS gained 1.9%. Last week, we highlighted the extreme premium at which the fund continues to sell. After this week's loss, the premium fell to about 11%, still ludicrous, in our opinion, for an investment holding bullion. Central Fund of Canada CEF -1.7% 2.5% 8.4% 0.0% AllianceBernstein Income Fund ACG -12.9% -12.1% -6.4% 6.1% BlackRock Enhanced Gov Fund EGF -6.5% -5.4% -1.1% 6.2% Duff Phelps Utility&Corp Bond DUC -7.0% -5.3% 0.4% 7.5% MFS Government Markets Income MGF -6.2% -5.9% 0.6% 7.6% Helios High Yield Fund HHY 0.0% -5.0% -13.2% 9.2% Dreyfus High Yield Strategies DHF 15.9% 12.9% -2.3% 11.1% Templeton Global Income GIM 8.2% 6.9% 0.9% 4.9% PIMCO Corporate Opportunity PTY 19.8% 20.1% 10.2% 7.1% Franklin Limited Duration Inc FTF -0.9% -2.5% -8.7% 7.3% Central Fund of Canada CEF is statistically undervalued on a three-year view. Helios High Yield Fund HHY is overvalued on a three-year statistical view.

5 Morningstar Closed-End Fund Research 5 National Municipal Funds Invesco Quality Municipal Securities IQM increased its monthly distribution by 7.1% to $0.075 per share from $0.07 per share. Invesco Insured Municipal Bond IMC increased its monthly distribution by 7.4% to $ per share from $ per share. Invesco VK Trust Insured Muni VIM $ % 2.8% $ BlackRock MuniYield Quality MQY $ % 3.3% $ BlackRock Municipal Bond Inv BIE $ % 3.3% $ Federated Premier Muni Income FMN $ % 2.8% $ BlackRock MuniVest MVF $ % 3.1% $ Nuveen Enhanced Muni Value NEV $ % 2.4% $ Western Asset Municipal Part MNP $ % 2.8% $ Putnam Managed Muni Income PMM $ % 1.7% $ Invesco Muni Income Opps Trust OIA $ % 1.8% $ PIMCO Municipal Income PMF $ % 2.4% $ Nuveen Municipal Value NUV -5.0% -1.6% 1.5% 5.1% Nuveen Select TaxFree Income 2 NXQ -5.7% -3.2% 1.1% 5.0% Nuveen Muni High Inc Opp NMZ -2.4% 8.5% 9.3% 8.2% EV Municipal Bond EIM -4.2% 2.9% 3.4% 7.8% Nuveen Muni High Inc Opp 2 NMD -4.7% 1.8% 6.4% 7.8% DTF Tax-Free Income DTF -5.9% -5.2% -9.5% 5.3% Invesco Insured Municipal Bond IMC -3.2% 0.3% -6.6% 6.1% BlackRock Municipal Bond Inv BIE -3.4% -2.4% -6.2% 6.8% MFS Investment Grade Muni CXH -2.6% -2.0% -5.2% 7.1% Western Asset Intermediate Mun SBI -4.0% -2.9% -5.9% 5.1% Nuveen Municipal Value NUV, Nuveen Select Tax-Free Income 2 NXQ, and Nuveen Municipal High Income Opportunities NMZ are statistically undervalued on a three-year view, by our measures. No national-municipal fund is overvalued on a three-year view, in our opinion.

6 Morningstar Closed-End Fund Research 6 State Municipal Funds Nuveen announced the merger of various state municipal funds in an effort to create larger funds with lower operating expenses and increased float. You can read the press release here. Nuveen CT Premium Income Municipal NTC will acquire Nuveen CT Dividend Advantage Municipal NFC, Nuveen CT Dividend Advantage Municipal 2 NGK, and Nuveen CT Dividend Advantage Municipal 3 NGO; Nuveen GA Dividend Advantage Municipal 2 NKG will acquire Nuveen GA Premium Income Municipal NPG and Nuveen GA Dividend Advantage Municipal NZX; and Nuveen NC Premium Income Municipal NNC will acquire Nuveen NC Dividend Advantage Municipal NRF, Nuveen NC Dividend Advantage Municipal 2 NNO, and Nuveen NC Dividend Advantage Municipal 3 NII. Three of Invesco's state-municipal CEFs announced increases to their monthly distributions: Invesco CA Quality Municipal Securities IQC by 7.7% to $0.07 from $0.065 per share; Invesco CA Insured Municipal Securities IIC by 8% to $ from $ per share; and Invesco NY Quality Municipal Securities IQN by 8.3% to $0.065 from $0.06 per share. Invesco VK MA Value Muni Inc VMV $ % 3.7% $ EV MA Municipal Bond MAB $ % 3.8% $ BlackRock NJ Inv Qlty RNJ $ % 3.3% $ MFS California Municipal Fund CCA $ % 3.6% $ BlackRock NY Inv Quality Muni RNY $ % 2.9% $ BlackRock VA Municipal Bond BHV $ % 2.4% $ EV NY Muni Bond II NYH $ % 2.9% $ Nuveen AZ Div Adv Muni 2 NKR $ % 2.4% $ Nuveen CT Div Adv Muni Fund 2 NGK $ % 2.3% $ BlackRock MuniYield Arizona MZA $ % 2.8% $ Nuveen CA Muni Value NCA -8.2% -6.3% -4.1% 5.2% Nuveen Ins MA Tax Free Adv NGX -8.4% -5.4% 0.4% 5.6% Nuveen VA Div Adv Muni Fund NGB -4.0% 0.0% 3.5% 5.6% Nuveen VA Dvd Adv Muni 2 NNB -3.6% -0.6% 2.5% 5.6% Nuveen MA Div Adv Muni Fund NMB -6.8% -4.6% 0.2% 6.1% Nuveen GA Div Adv Muni Fund 2 NKG -1.9% -1.8% -5.8% 5.2% Nuveen GA Premium Income Muni NPG -3.3% -4.7% -7.3% 5.1% Nuveen MI Premium Income Muni NMP -9.1% -8.0% -13.1% 6.2% Nuveen PA Invstmt Quality Muni NQP -6.5% -5.2% -10.1% 6.5% Neuberger Berman NY Inter Muni NBO -3.2% -3.7% -6.6% 5.5% All of the state-municipal funds remain within the range of being fairly valued on a statistical, three-year view, in our opinion.

7 Morningstar Closed-End Fund Research 7 * All data in the accompanying tables is as of the market close Thursday, Aug. 4, One-week total price return percentages are calculated from the prior Thursday's market close. In some limited cases, funds do not disclose their daily NAV values, and in such cases their estimated NAV (based on the performance of their most recently published holdings) is used. ** The funds listed in the tables are ranked according to their one-week price total return. *** The funds listed in the tables are ranked using three-year z-scores that are not shown. This statistic measures how many standard deviations a fund's discount/premium is from its three-year average discount/premium. For instance, in these tables, a fund with a z-score of -2 would be two standard deviations below its three-year average discount/premium. Over a long period of time, a fund would be expected, statistically speaking, to have a z-score of -2 or lower only 2.14% of the time. Funds with the lowest z-scores are considered to be relatively cheap, while those with the highest z- scores are considered to be relatively expensive. We consider funds with a z-score of -2 or lower to be "statistically undervalued" and those with a z-score of +2 or higher to be "statistically overvalued." Mike Taggart owns shares of GTU, which was mentioned in this article.