Few people pay much attention to the management team of a closed-end fund (CEF). But it’s becoming a much more critical factor driving CEF upside (and downside!), as well as these funds’ 8%+ dividend payouts.
I was reminded of this recently by a story that’s unfolding in the UK, where two asset-management firms are struggling a bit to hire CEOs. One is Scotland-based abrdn plc (SLFPF), whose shares have risen just 2.6% annually in the US on average over the last decade.
Compare that to a roughly 10% average year-to-date return enjoyed by the other major asset managers abrdn is competing with, and you get a good idea of what’s happening here: abrdn isn’t doing well enough to attract the best talent.… Read more
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