Closed End Fund Strategy

An approach to investing with Karl Schmidtke

Diversified Portfolio

• The portfolio of funds would invest in closed end funds that trade at a discount to the fund's net asset value.
• A portfolio may consist of as few as six closed end funds or as many as twenty, depending on the size of the account.  Larger accounts will have more securities in them to allow for ease of trading.
• The objective of this portfolio of funds is to outperform a blended index of 70% S&P 500 Total Return/30% Morgan Stanley EAFE Index Gross Dividends. 

Unique Investment Opportunity

• The portfolio of funds employs a strategy clients are unlikely to see in other investments they may have.
• A primary objective is to own undervalued closed end funds at all times.
• By buying closed end funds trading at a discount, preferably at or near their average historical discount, there is potential for this portfolio of funds to outperform its benchmark in both up and down markets.

Investing in Undervalued Securities at All Times

As the discount approaches the historical average for the fund, the position will be sold in order to invest in a more undervalued fund.

Investment Advisory Arrangement

Investment advisory fees to manage this account may be tax deductible if paid with non-qualified funds.  Consult with your tax adviser.  Northland Securities does not offer tax advice.

Risks

Investments are subject to market risk.  This is not an offer to buy or sell securities.

For more information on this strategy please contact Karl Schmidtke at
1-866-333-0141