It is true that this ETF is trading down about 30% from its IPO @ $20. The market has been rough, but the price drop has far outpaced the reduction in NAV. Currently, AWP is trading at a 13% discount to the value of its holdings.
Question: Is management competent?
If they are, then this is a steal. If they are not, Mr. Market is just selling while he can.
The fund manager is buying in heavily (w/personal $). I have a small position (1000 shares) and thinking about doubling down.
tax loss selling in AWP has been relentless. Sam has done a good job considering the timeing of this thing coming to market. Under 13 is a great place to DOUBLE DOWN and I did so on Friday. You will see a big bounce in all CE funds in Jan 08. This has been the best buying opp in CE funds since 2002!! We have alot of scared people who have ran to the exits!
I am actually in the same boat as you are, matter of fact I added this to compliment my positions in NRO and NRI - just wanted to diversify my real-estate position to include some international exposure as well. Performance of the shares vs. NAV not including it sucks to get into a position and have it go against you but these guys have a 1) pretty decent track record 2) they employ a dividend capture strategy within the fund as well 3) the dividend rate seems to be fairly stable (and in addition to that you get the currency exposure) 4) Management is buying into the fund and finally the dividend rate is extremely good (although not quite as good as NRO and NRI for instance). ����.. my point is that if you are going to get into a closed end fund might as well do it when its selling at a discount and is paying you a 12% dividend --- just as a comparison look at closed end funds offered by Blackrock � there isn�t a single one selling at a premium � just diversify, establish a position, collect the dividend and don�t fret about it ������..I also own PHK
It's reassuring to find at least a few investors out there with a strategy similar to mine. REITs have gotten hammered ever since Sam Zell sold, and the CEFs are suffering a double whammy with tax loss selling. I'm also sure that a lot of folks don't understand the mechanics of an IPO for CEFs and are bailing out now.
My core holding is VNQ, but I also supplemented that with NRO and AWP. In fact, I'm still nibbling at AWP at these levels.
I've gotten hammered on NRO and the pain probably isn't over yet for REITs in general. I've kept my allocation at 5% and hope to ride this out for the longer term--at least that's what I keep telling myself. Hopefully the risk is somewhat minimized with discounted CEFs, where professional managers spread the bets across a variety of segments/REITs. In the meantime, if distributions aren't cut dramatically, I'll love the income stream.