They have lost so much capital that they cannot even generate enough income to cover their expenses, much less cover the div.
If you read the 10 k it says the funds expenses are now 6.5% of the funds assets yearly. So this fund would need about 16% to earn the div and cover the fund expenses & mgt fees.
Its impossible. Especially in a low interest rate environment. They are taking ever more risky stuff to try to stay even and are getting hit with defaults and losses.
The fund is permanently impaired. It is now too small to earn enough money to cover mgt costs and the div. Thus they always change the div to a return of capital. It does not generate the div it supposedly pays. This fund is doomed to fail or cut its div.
This is a very small company and cautius too,I recalled back then when oil price was going to the moon,many drillers can find capital easily and this co is too cautius,small and conservative,so they dont risk their capital much. You know no risk no reward. Also then comes 2008 and oil pric crashed,small companies dont recover as few poeple know of them.