RE: RE: Still holding on Intellectual
I see no flaw in your analysis, in fact I stated similar facts in my February 11/12 post when the n.a.v. was $5.36. True the latest n.a.v. now $4.51. With the termination date still over a year away I believe that CGQ.e still offers a great return, however with each passing month one can only hope that along with a raising global market that the portfolio n.a.v. of CGQ.e moves n'sync. Otherwise it could be a mad rush to the exits. I plan to review this fund in the new year. Yields>16% come with risk, CGQ.e is no exception.
A copy of my earlier post
I wish your post was correct but I am afraid the facts are more complicated.
First the funds N.A.V. of $29.83 (Jan.31/12) is made up of two types of shares CGQ & CGQ.e
CGQ trades at $24.47 pays no dividend and will at termination pay the greater of N.A.V. or $25.00/share
CGQ.e trades at $6.06 pays a consistent dividend
.0875/share/month 17.3% yield N.A.V. of as of January 31 2012 was $5.36.
At termination on or near November 30, 2013 the shareholders of CGQ.e will be paid the N.A.V. of CGQ.e as of that date. Meanwhile shareholders will collect a guaranteed healthy annual dividend of $1.05. The forward contract agreement granting the return of $15.00 was canceled after the financial crisis of 2008 and is no longer offered at termination. CGQ.e generates income via interest income, capital gains, earnings from selling covered calls and dividend earnings from portfolio holdings. The fund from time to time has re-balanced this portfolio reacting to current market conditions and investing in new sectors.
I hope this answers your questions.
I guess one thing is true. "If it sounds too good to be true, it probably isn't. "
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=30658661&l=0&r=0&s=CGQ.E&t=LIST#7zO0wir7hCq1L10q.99