RE:RE:Re Retraction The problem, as Navgod has pointed out, is that when there is a split, the coverage ratio for payment decreases.
Oversimplifying dramatically here, but imagine you have a fund with a total NAV of $100 and there are 10 shares outstanding. Each share can be attributed a NAV of $10 per share. Now lets say we have a 2-for-1 split. The total NAV of all the shares does not change, still $100, but now you have 20 shares and the NAV per share is now only $5.
I think that's the worry with the retraction. Currently, the NAV attributable to the common shares is north of $8. However, if there is a split, the NAV per unit will be lowered. It may even get close to $5 per common share, which ofcourse is the threshold to pay. Regardless of whether the total NAV stays the same, a lot of people will dump their shares if the amount of safety gets materially eroded.