RE:RE:RE:The leverage factorAssumed Factor 1.8
ENS closing price on Thursday $12.97
ENB was up $0.37 (0.77%) on Thursday
Apply the 1.8 factor to the daily % increase in ENB:
1.8 x.0077=0.01309
Add one to the factored increase = 1 + 0.01386 = 1.01386
Multiply the factored number (1.01386) x the closing ENS NAV on Thursday ($12.97)
1.01386 x $12.97 = $13.1497 which gets rounded to $13.15
There is always going to be rounding factors as RBC (who provides the independent evaluation of the NAV) will round the NAV to the closest penny each day. So, $13.13 could be anywhere in the range from $13.1250 to $13.1349. The day before, ENB was up $0.01 which didn't move the NAV.
I just noticed that the factor should be closer to 1.6 as it would have produced a NAV of $13.1298 which gets rounded to $13.13
I only have two days of data to work on so my numbers are rough. Over the next week or two, I should be able to have enough data to smooth out a more precise number for the factor.
Of course, the factor will float around a bit because the cash as a percentage of assets will move as the share price of ENB moves. I think the cash held by the fund for redemptions and dividends will likely be fairly constant over time other than when the fund has to have more cash to pay for the Pref divi every quarter.
The day to day math for calculating the NAV becomes simple once you have a handle on the leverage factor.
Once you can confidently predict the NAV and gained a feel for the range of premiums of ENS over the NAV, the real fun begins.