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AllianzGI Convertible & Income Message Board

  • want2besailing want2besailing Feb 2, 2013 11:08 AM Flag


    I have several questions I hope someone out there can answer:
    1) Why was this fund trading at $15 at one time?
    2) What was the dividend when it was at $15 ?
    3) What would it take to get it back to $15 ?
    Its it an intrest rate issue or is it there holdings and what is the difference today as opposed to 10 years ago...Thanks for any help with tis matter!

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    • (1) The fund started at $15. It essentially hovered in the approximate $15 range until the great financial melt-down.

      (2) Before the financial melt-down the dividend was 0.119. In February 2009 the dividend was dropped to its current rate of 0.085.

      (3) That's anybody's guess. You would probably need a general economic recovery, or maybe an increase in the spread between short term and long term interest rates, or maybe a general rise in the net assett value, or maybe a rise in interest rates, or maybe some combination of these. It could be that investors are worried that the fund might go down when interest rates start rising next year, or it could be that investors are concerned because the fund is missing their dividend from operating income by 0.005 (although they show positive capital gains and a rise in net assett value), or it could be that the market is just irrational.

      The fund has behaved reasonably well. All the funds from every company, both the exchange traded funds and the mutual funds had a large drop in the financial melt-down. The funds from all companies experienced a drop in net assett value. NCZ's drop in share price during the financial melt-down and the recovery is approximately in line with other funds.

      I don't see where all the negativity for this fund is coming from. At the current price the fund pays a 12% yield. Global Alliance is one of the biggest and best fund managers. The dividend has been stable since 2/10/09 and the fund isn't showing any return of capital. The net asset value and the share price have been gradually going up. The company shows a small negative undistributed income but they seem to be making that up through capital gains, and even if they are forced at some point to cut the dividend it would most likely be a small cut. Just my opinion but I think that NCZ and NCV are the best bargain out there in their class.

      • 1 Reply to hungrydoggy
      • I've looked at this fund several times and it seems to stay around the 7.50 to 8.50 range, it has been around a long time and has been paying a pretty decent dividend. I have also looked at mreits but they scare the hell of me! I believe this fund could be a very good addition to a Roth IRA where as you collect the dividends tax free. 24,000 shares pay a little over $2000 a month at the current pps. Put that dividend on a auto repurchase and that a lot of $$$ over a 5 year window, which is what I have left till I'm 62.5..There is no other options at this point in time. I've tried trading stocks against the big boys and I'm back to where I was 4 years ago..Time to trade for the last time...Going in tomorrow for the buy!

        Sentiment: Buy

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