Double self liquidating fund revista nosso amiguinho online dating
Since inception, NAI has paid out a total of .57 of distributions, the last being on September 12th, 2013.
Doing some quick calculations based on NAI's inception NAV of .88 and inception market price of , NAI's total return NAV performance over the life of the fund was 31.2% and NAI's total return market price performance was 24.7% (distributions added back though on a reinvested basis).
This is one of the great features of CEFs that other investments such as stocks or ETFs can't compete with.This can be a costly mistake since as most investors know, the NAV of a CEF is its true worth, i.e. Unlike the book value of a stock which will not be so reliable if the company ever had to actually liquidate, an equity based CEF's NAV is about what you would get if a fund sponsor ever announced a liquidation.It might take a week or two depending on the size and holdings of the fund, but rest assured, in the case of equity CEFs in which their holdings are mostly in stock, your financial interest is really represented by the NAV and The bottom line is that you really only own a fund's NAV if something goes wrong unless you can sell the fund to an unwitting buyer at a premium.This is because NAI had oscillated from a premium to a discount and back again several times since inception and for those who think CEF's valuations don't change that much over time, NAI is an example of many that do.Though difficult to time, even if you had gotten close to those high and low valuation points during NAI's existence, you would have easily outperformed EFA and certainly done much better than if you held NAI through it all.
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NAI was not a fund I owned because of its poor historic NAV performance but there is still a lesson to be learned here.