RE:RE:Nature of Split Funds I don't consider myself an "expert" - but rather informed. The only way the "A"s on any split can maintain the return (in the initial case of DFN 8% based on $15 SP and $1.20 year distribution) is for the NAV value to be continually rising and for the brains behind the fund to be brilliant in selling call options. The financials generally pay dividends of 3 / 4% so how do you get to 8% from that? By dipping into the cash on hand thus reducing the NAV These funds don't call the monthly payments "dividends" but rather "distributions". The payments are basically a return of initial capital. In the case of DFN the inital $15 is now worth $8.50 and something like $18 in distributions - not a great return for a 15 year investment. The trick with the splits is to play them close to the $15 mark when volitility allows for the potential of a good monthly payout and SP increase. As well shorting at the $15 level with a close eye on the NAV makes for easy returns