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John Hancock Tax Advantaged Div Message Board

  • steveandjude Mar 18, 2008 8:44 PM Flag

    HTD versus Western Mgmt

    I bought this fund on the advice of my broker when it opened at $20 per share back in 2004. Unfortunately, my broker talked me into a large position (5k shares). After lackluster performance for more than a year and declining share value, I sold the 5K shares at a loss, if memory serves $16.50/share. I kept a small stake (dividend payments) as a painful reminder of my first purchase of a John Handcock fund. The fund has dutifuly paid a dividend and I have noticed my position slowely grow based on dividend re-investment. Recently, shareholders received word of a proxy fight from Western Investment. This fund has always traded at a discount to NAV. The complaints from Western make sense to me, but their 614K share derivative position and asking for a self tender of 25% of shares is a little over my head. Is anyone familiar with Western, are they trying to manipulate the share price for their short term advantage (did they buy options on the shares)?

    p.s. I fired the broker that sold me my original HTD position based on the lousy performance of this one investment and my opinion the purchase was motivated by broker commission for this newly issued fund. He made money short term, but I'm sure realizes he would have made much more keeping me as a long term client, penny wise, pound foolish.

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    • Reasons to buy????
      50%+ portfolio in utilities
      20% discount from NAV
      Yielding 15%.

    • I'm trying to help a friend out of this fund, they bought down their position, another "broker talked them into it."

      Western owns enough that they may be running it up for the short term, especially since they had a strong buy up last year, however, installing board members is a long term position.

      While HTD sells at a discount on NAV, it's dividend is lower than similar funds in the same class and it has a horrible sell fee of 1.98%.

      There are better funds out there if you are interested in modest appreciation and generous dividends.

      Looks like Western was just trying to lower their cost basis, normalize the price, then make the fund more desirable.

      Remember, they are seeking to install board members, so if things go as their proxy request states, HTD may be a good buy.

    • I dont trust hedge funds. John Hancock is pretty reputable and tyhe fund NAV continues to grow. Dont care about market value (as long as it does not exceed NAV because Im in for long haul and dividends. Love buying it at 10 -15% discount, I like the diversification of the stocks and bonds they own within fund as well. I've done so well with this fund I jumped in after the IPO on their HTY fund as well.
      I voted with Hancock management on this one and against Western Management....

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