about Closed End Funds(CEF) that you may want to consider.
First, Equitilink manages FAX for management a fee.
Second, the management fee is a percentage of the NAV, not the market value. Therefore management's first concern is with keeping the NAV as high as possible which IMO strongly indicates that they won't pay a dividend that results in the return of capital to shareholders for very long because it tends to lower the NAV which is the basis for their fees. I am not saying that they are not concerned with the market value, but market value concern is secondary to NAV value.
Third, don't look for Equitilink or most other CEF managers to desolve a CEF because the market value is at a discount to NAV and it would be good for the shareholders. They are in business to make money for themselves first and foremost. No FAX, no jobs for them.
Fourth, as long as interest rates are going up and depressing the NAV of the fund and as long as the Aust. $ is weak, I have a real problem seeing how FAX can increase net income from operations to earn what they are paying in dividends or how they will generate any capital gains to make up the difference either.
Perhaps you or someone else can point out something that I am missing. Also, understand that I am long FAX at about $5 9/16 and would like FAX to perform well to!