As long as investors perceive the fund as a good investment, it will always sell at a premium. CEF set a pattern for themselves on their IPO's, there are those that sell at a discount and those that sell at a premium to NAV. They never wavier from that pattern, look it up. PHK has established itself to sell at a premium and will continue to do so as long as the dividend stays intact, which it will. Bill Gross will protect that dividend.
PHK was trading between a discount of 10% (its first three years!) and premium of 10%, from inception 2003 to 2009--Chrisbull--not only are you wrong, but verifiably and totally prove the opposite of your theory--see cef connect of use historical prices of fund and value.
Some posters are so wrong (on their FACTS, anyone can have opinion), I guess they must be TROLLS looking for response-- I guess I must be a greater fool in responding to them.
Unfortunately Dan, I think these are actual owners of this thing, not trolls. I guess some people only learn the hard way, and are so obsessed with current yield that they can't see the emperor has no clothes. Whether they even understand how a closed-end fund works and the differences from an open-end fund is questionable.
Shame on Bill Gross too, for obfuscating how risky this thing is with his lawyerspeak when asked to comment for the Barron's article.