Is this why this CEF is dropping so much everyday this week?
If so - can any CEF cease trading IF they have ...?
Geez - what am I saying?
The END IS NEAR ?
Bad day - Bad week - Bad year for any CEF holder.
Ok - I'm done.
Nothing more to express.
1Q earnings report says net earnings are .226 per share.
Current div is .091 per share, or 0.27 per qtr.
Seems there is vertually NO ROC in the div now.
Or am I missing something...?
Some time back I saw a release that claimed EV was going to keep divvies near 100% of net earnings. Looks like they are doing that now.
i think manulife will manage pretty conservatively and try to match div w what fund is getting, don't forget the very low libor leverage this fund uses too, very beneficial now to yield.
that doesnt mean the fund is well managed though, although it has run from 5.50 to 8.50, may head to 10?or so, people are getting more risk tolerant and the yield is tempting.
look what Manulife mgrs did to BTO, the other CEF they run-- was mandated to hold firms that could merge inthe banking industry consolidation- ie small/mid size banks/thrifts, then they were in fannie, freddie, wachovia, what did that do? drive the price so low the damn thing had to reverse split last yr 1:4! so I just watch the monthly releases on the JH website as to what is in these funds more closely now- keep tabs on what mgmt has invested in. long now, not buying or selling but up 25% on my cost averaging and tempted to sell a little, holding in my IRA>
Most CEF's that have a mandate to generate regular income for its investors occasionally do a return of capital when their regular income isn't enough to cover the dividend. Its not the worst thing in the world, essentially you are getting some of your investment money back and the stock drops by that amount. Like a dividend, really, but not taxable.
Its been happening a lot in this economy. Not great but at least there is come capital to return.
The situation seems to be steadily improving, however. For the fiscal year through June only 20% (about 14 cents) of the dividends have been return of capital. April seems to have been the worst month with nearly half of the dividend being ROC. June dividend was 100% covered by net investment income.