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Aberdeen Australia Equity Fund Message Board

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  • Reply to

    Distribution is still too high

    by wright.tom64 Jan 2, 2015 9:27 AM

    Thanks, will look.

  • Reply to

    Distribution is still too high

    by wright.tom64 Jan 2, 2015 9:27 AM

    Good Morning....
    You might want to take a look /analyze/ the cef RVT. I invest for retirement income so RVT has again caught my eye. RVT had a great end of year payout and has a 8% distribution policy paid against their "NAV". Many years back, prior to the 2008/2009 collapse of the mkt, RVT was paying 10% distribution policy. A lot of us had bought in the 14's and loaded up with additional max shares at 10.56 with their RO [rights offering]. RVT went to the 20's but we had to sell off as the mkt was collapsing in 2008/09. We kept the watch though. Recently, I have reentered RVT with a minor position of 13.86 and will probably be adding more on mkt dips....
    Looking at the current data, RVT is at a major discount of +1.13, intrinsic value of 15.70 and increasing, nav delta weekly chg of +.585, mtb of +1.0372 with a hefty Rf [risk factor protection] of +2.1578. Traders and investors appear to have found it and I show them with a positive mkt buying of +0.069....
    Anyway, something to look at....
    Have a "GREAT" weekend.week....
    Live Long and Prosper....
    Best Regards/Eddie....

  • Reply to

    Distribution is still too high

    by wright.tom64 Jan 2, 2015 9:27 AM

    Thank you Eddie. Your explanation has given me much more information than I had previously known. Volatility has never concerned too much but this latest huge divergence in the U.S. dollar vs the Aussie has definitely damaged my portfolio (I have reinvested IAF distributions all along the way for nearly two decades and have sold for a profit a couple of times but now probably have too much as a proportion of my IRA). Still, I am willing to keep this for at least 4 more years and do not think the slump in China or Europe will last that long. Thus, I look for a return to an upper area approaching 10.

  • Reply to

    Distribution is still too high

    by wright.tom64 Jan 2, 2015 9:27 AM

    Good Afternoon....
    Keep in mind that IAF pays their distribution [10% policy] against the "NAV". As the nav increases or decreases, the quarterly payout will "always" be adjusted accordingly. The mktprc will have no effect. With that said....
    Many years ago, a bank was "continually" buying shares that drove up the mktprc. When the bank pulled out, the mktprc collapsed and most of us sold out....
    Normally, IAF has a trading range of 6 to 9. One should follow inside buying activity when invested in IAF for early buy/sell signals [currently no inside buying/selling activity]....
    Currently, IAF is turning around and now has a positive Rf [risk factor] of +0.3463, a intrinsic value of 7.58, a positive mtb parameter of +1.0303, a grade value of 84 [current stability within the mkt], and a buy signal of 9star [using a 0-10 star rating system]. In addition, the discount rate for IAF is currently positive for buyers at +1.09....
    Should your "BUY" mktprc average currently be too high against the current mktprc of 7.15, one should use a washsale [if in a taxable account]. As usual, since IAF is rather volatile, one should never hold more than phase #1 [2%] within one's "very diversified portfolio (16 securities or more in portfolio to meet statistical safety requirements}....
    One single opinion of the many I am sure....

    Have a "GREAT" week....
    Live long and Prosper....

    Best Regards,
    Eddie....

  • I have held IAF for years from prices as low #$%$ to as high as 17 and am very aware of the effect currency rates have on the fund. I would be more than happy to accept a 5% distribution rate that might strengthen the balance sheet as opposed to the rates IAF pays.

IAF
7.27+0.02(+0.28%)Mar 30 4:02 PMEDT