The fund typically invests in preferred securities, convertible securities, high yield debt, and senior loans.
i think this is more of a fixed income play and i imagine the higher returns are generated with leverage (maybe a bit too much but not sure). i own DHF which is somewhat similar to JQC. DHF has done much, much better than JQC so they must have made some really bad bets to get hit as hard as they did.
AOD owns equities not fixed income stuff. so mgmt can write calls as part of their strategy. and they can use small amounts of leverage (say 10 to 15%).
every couple weeks i check a few dozen cef's (some i own, some i owned, and some i might own). and they aren't all in the same asset class (some are fixed income style, like DHF) but i like to see how debt funds are doing against equity.
AOD is hanging tough right now. of the cef's i look at, they are running second behind DHF year to date. but they are in first place in equity funds (say against stuff like eto, mfd, or bwc).
i sold my position in AOD so i'm not pumping the fund. just stating what appear to be facts.