"Our results for the quarter were negatively affected by an incident that damaged a section of one of our converting lines, which restricted production in the face of strong open orders, causing a reduction in sales in the quarter. This is an insured incident which we believe will result in an approximate $1.0 million claim, or $0.06 per share, related to these lost sales under our business interruption insurance, which has not been included in our 2015 results."
Do you have the nerve to tell utg investors that they should welcome this 126 million loss of their money. You take utg investors for being passive sheep ready to be preyed upon by the wolves you adore. There is no way to spin monthly action in utg unless you are a short or a beneficiary of the added 3.5 million in commissions.
in one month? A 2 million dollar Christmas bonus. AND INVESTORS THINK THEY GOT A DEAL BY GETTING A 5% DISCOUNT AFTER LOSING OVER A HUNDRED MILLION !
First of all 1.71 % disappears for expenses. Then they buy stocks that could easily decline because of rising interest rates. You have already seen that one month's of their management wiped out 2.5 years of monthly interest. That's 30 months of monthly dribbles wiped out by the rights offering. THEY SHOULD CANCEL THE RIGHTS OFFERING IMMEDIATELY AND START MANAGING WHAT THEY HAVE PROPERLY!
From November 9, the XLU (Utilities Select Sector) is down ,0082 % while UTG is down 15.2%. They made a mess of a solid utility fund by their greed to increase their management fees.
since rights and management is 2 million plus to their fees. What a travesty!
They knew exactly that the stock would drop on this dilution. They will most likely not even read your letter. One imagines that they can not wait to add the 2 million in added fees to their stash. Sorenson and Ferer are feasting while utg investors get creamed.
I repeat. Since the announcement of the rights one month ago investors lost 15 % of the money or 123,000,000 dollars. IN ONE MONTH! There was no need to raise more capital. They could barely manage the 800,000,00+ they were working with. Management should be fired and the fund should liqudated at 28.80 a share.
That is still an 88 million dollar loss of shareholder value! Investors should be infuriated with this team of greedmongers. " Boys, all we have to do is get these jokers to buy more shares and we can increase our fees by countless ducats. These dumbos will think we are acting in their interest." (T. C. Slitherwood III of Snakesville township summarizing his philosophy of life.)
NAV is probably close to 28.70-78 and its market value is 24.23. That's around 15.5%.Since the announcement of the rights on November 9, UTG investors lost $123 million or 15%. If they owned the stocks in the portfolio, they would have lost a few cents per share ( .0034).. The rights offering was a fiasco that seems to have been done so that management can get a higher payout ( apparently another 2.4 million in annual management fees). Their total 12 month reward for this assault on shareholder value will apparently be 12 million.
PS: I take may information from the Closed-End Funds web page. Management fee are listed as 1.13%.
Utility index down 0.12 %. Utg down 3.26%. This is getting ridiculous.
Yes, this fund is filled with very solid dividend paying stocks: The yield is excellent compared to the 1.37% yield you would get in a 5 year CD or 2.97 % in a 30 year bond.(with prospects of higher dividends from many stocks in the portfolio).