Some closed-end fund investors use funds with managed distribution policies as a desirable way to provide a regular stream of income. However, some confusion surrounds these funds and the nature of the distributions made to shareholders.

Distributions are usually paid either on a monthly or quarterly basis in two different ways: as a percentage of net assets or as a level dollars-and-cents amount that may be modified from time to time. Our list includes both types of funds. But in some cases, the distributions of funds that payout a percentage of net assets are comprised of more than income generated by the fund. They can also include a return of a portion of shareholder capital. In the case of these funds, typical expressions of yield can be misleading because they include return of capital in their calculation.

What to Look for on Our Website
Our website is the only place where you can search for a fund with a managed distribution policy and view more precise yield information (view yield definitions). We show two yield numbers on all funds. The first yield number is what we call the income-only yield. This number refers to the true income components that make up the yield and does not include any redistributed capital. The second yield number is the distribution yield – the total amount of all distributions made, regardless of their nature. This is the same yield number that appears in major news outlets such as newspaper listings and may include return of capital.