I agree with you. All the negative possibilities you mentioned are real threats to NCZ. For me this fund has been a falling knife. In the last 17 months it is nothing but bad news, NCV and NFJ too. All Allianz has to do is collect their fees and file the mandatory paperwork. A 16% yield is too good to last very long unfortunately.
NCV rallied from its 2008 lows and did fairly well until June 2014 when it began its steady steep decline in share price. The rally in NCV occurred during a period of very low interest rates. Does this CEF have any positive future in a rising interest era?
If PDT managers don't see PDT a good enough to buy personally why do they insist on using the funds cash to buy more PDT shares? OPM, Other Peoples Money, simple. Give the cash to the shareholders and them decide if PDT deserves to be bought.
PDT to continue more buybacks for 2016. Why not return this cash to shareholders? With interests rates ready to begin their climb back up the price of PDT will drop and the managers will be paying too much for these buyback shares like Exxon management has done with XOM.
Maybe Pimco funds are better than Allianz funds even though both are owned by the same corporation. Like Lexus vs Toyota.
I guess if you bought NCV at its 2008 low then even today at $5.78 it still seems like a great fund. But for those buyers who got in 2014 at $10 this fund is "The House of Pain."
If one owns this fund you cannot help but wonder how low it will drop to and if it will ever recover. It never got up to its IPO price after all these years even with the crash of 2007-2008 long past.
Thank you for the information on LOR, one of my worst investment choices ever. I bought LOR @ $15.75 in Sept 2014 and have watched this drop like a rock and reduce the distribution. My timing was terrible. I would only recommend this fund to someone who likes to lose money.
I'm down 45% with NCV in 14 months and the market is near all time highs with a strong economy. I can only imagine even greater losses when interests rates actually rise.
I hope you're right about the payout. What do you figure the payout will be? Thank you for posting GAB concerns on this message board as most postings have nothing to do with GAB unfortunately.
I'm sure it is probably a good time to buy more shares at these depressed prices. Last year I bought 10 different CEF's. Three of the ten funds have cut their distributions and eight of the ten funds are down 15% to 40%. I have no appetite for putting more cash into these funds.If they stop falling in price and don't cut their distributions I might get even in 3 or 4 years. I should have stayed with my large, high paying big dividend stocks. Best of luck employing your drip strategy as it is often a great move if you picked a winner.
What about the falling price of GAB? In Sept 2014 I paid $7.50 a share and it immediately dropped to below $6. I bought more with the "Rights" offering @ $5.75 and a year later it is below that price. The distributions do not make up for the loss in price per share. Where do you see major wealth creation in GAB? Thank you for discussing GAB on this message board as too many posters do not.
Yes, they did drop like a rock and the managers probably don't care as they get paid no matter what happens. Could have cleaned up knowing all the bad news was coming plus a 30% dividend chop.