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For levered CEFs the fees cover the interest on the leverage loans as well as management fees so it's not as bad as it seems.
Not usually buy and hold material, the strategy is to buy at a discount and sell when it narrows or when your capital gains equal about one years distributions.
I don't have any CEFs at the moment because it is a lot of work watching them and getting in and out at the right time ,but some people have a lot of success with it. A good source of information is the Morningstar CEF discussion board.
FYI Dan Ivascyn chief investment officer at PIMCO is heavily invested in several fixed income CEFs he manages.
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