During the year ended February 28, 2015, Convertible & Income sold 1,678,728 common shares. Proceeds from the offerings by Convertible & Income during the year ended February 28, 2015 (net of commissions and fees) totaled $16,959,259 and offering costs in connection with the sales of shares were $16,983. Convertible & Income II did not sell any common shares during the year ended February 28, 2015. During the year ended February 28, 2014, Convertible & Income and Convertible & Income II sold 7,635,105 and 7,869,665 common shares, respectively. Proceeds from the offering during the year ended February 28, 2014 (net of commissions and fees) and offering costs in connection with the sales of shares aggregated $72,694,937 and $67,744,043, and $214,454 and $202,305, for Convertible & Income and Convertible & Income II, respectively.
According to CEF Connect, as of 2/28/15 the fund is earning 0.0569/month, and its UNII is 0.0319/month. I don't know where your figures come from.
I know now the fund is in the habit of issuing new shares and uses the dollars therefrom to pay the div. This info is in the annual report.
Can anyone explain how this fund and its sister fund continue month after month to make distributions that exceed their income? Their distribution rate is tempting but I'm afraid to jump in before they cut the div. Where is the money coming from?
Hello Mike— Thankful for the thorough analysis of AOD's six-month report. Shocked that they stopped buying back shares and that they are using a variation of their Dividend Capture scheme. Not good. Nor do we know why they are using ROC to help pay for the monthly div. Interesting that their sister fund (AGD) is not using ROC and is sailing along with surplus earnings each month building up their UNII. You might want to take a look at AGD's report and compare. My abilities for interpreting reports is nowhere yours.
I think AOD's numbers are promising; one reason market price keeps rising. But I wonder why they are using ROC to round out their monthly payments.