Two closed-end funds offering dividend yields above 9% are currently trading at substantial discounts to their net asset value, presenting potential opportunities for income-focused investors. Liberty All-Star Growth Fund (ASG) is yielding 9.3%, while BlackRock Technology and Private Equity Term Trust (BTX) offers a 9.6% yield, with both securities trading at discounts of up to 17% relative to their underlying net asset values.
The significant discounts reflect recent market weakness that has disproportionately affected these equity-focused closed-end funds. Both funds maintain exposure to technology and growth-oriented sectors, positioning them to potentially benefit from anticipated productivity gains driven by artificial intelligence advancement and broader economic digitalization trends.
Investors evaluating these securities should consider that closed-end funds often trade at premiums or discounts to NAV based on market sentiment and liquidity conditions. The current valuation gap presents a technical consideration for portfolio managers seeking high-income securities, though individual investment suitability depends on broader asset allocation and risk tolerance criteria.