Double self liquidating fund rhashan stone dating websites
This is because NAI had oscillated from a premium to a discount and back again several times since inception and for those who think CEF's valuations don't change that much over time, NAI is an example of many that do.Though difficult to time, even if you had gotten close to those high and low valuation points during NAI's existence, you would have easily outperformed EFA and certainly done much better than if you held NAI through it all., and I first warned investors that NAI would probably have to cut its distribution again or face continued NAV erosion.At the time I wrote the article, NAI's NAV yield was 16.3%, which was much higher than the 12% NAV yield that I have identified as a red flag zone for equity CEFs that would probably need to cut their distribution or face continued poor NAV performance.NAI's Final Curtain Call Allianz Global Investors didn't really give a reason for liquidating NAI in its press release and perhaps we'll learn more later.I'm guessing between the fund's poor overall performance and small size, it just wasn't a big revenue generator and Allianz decided it wasn't worth the trouble.
for their AGIC International & Premium Strategy fund (NYSE: NAI), a small 8 million, international stock option-income CEF that really hadn't performed very well since its inception in late April of 2005.
This can be a costly mistake since as most investors know, the NAV of a CEF is its true worth, i.e. Unlike the book value of a stock which will not be so reliable if the company ever had to actually liquidate, an equity based CEF's NAV is about what you would get if a fund sponsor ever announced a liquidation.
It might take a week or two depending on the size and holdings of the fund, but rest assured, in the case of equity CEFs in which their holdings are mostly in stock, your financial interest is really represented by the NAV and The bottom line is that you really only own a fund's NAV if something goes wrong unless you can sell the fund to an unwitting buyer at a premium.
Timing is obviously critical in any investment, however it can be much clearer with CEFs when they become under or overvalued based on their historic discount and premium price levels.
In my research, I first find the best performing CEFs at the NAV level taking into account all distributions and then I keep an eye on their historic discounts and premiums because eventually, good things will happen to funds that are performing well at the NAV level but are historically undervalued.