RE:RE:NAVFound this:
The following is an explanation a researcher got from Strathbridge Asset Management after inquiring about the NAV Threshold
The distribution policy of the Premium Income Corporation fund is made at the discretion of the board of directors as they meet each quarter. There is not have a NAV trigger in the prospectus for determining the distribution levels.
Some of the factors the board considers are the Net Asset Value of the A share, the coverage ratio for the Preferred share, and the outlook for market and economic conditions for the longer term.
In past we have reduced the class A distribution in response to a decline in NAV. The first instance was during the financial crisis that hit in 2008 and 2009. More recently COVID-19 upset markets in the early part of 2020.
The April 2020 class A distribution was cut to $0.10 per share. The March 31st class A NAV used to determine that distribution at that time was $0.84.
The prior distribution in January was $0.20319. At the time that distribution was determined the class A net asset value was $5.41 (December 30, 2019).
The distribution was fully restored to $0.20319 quarterly for the April 2021 payment.