Glad you enjoyed it and thanks for watching and commenting, @TotallyRegWhatelse. I know the vid was (GOF) and (PDI) specific, but I thought it would be helpful to show how all the moving parts work within a closed end fund. You might want to check out my latest vid on (CLM) and (CRF) as well. All the best. Lee
Thanks for the comment @qqcute4563. I do have a few vids up, and I will be posting more. This video is technically part two to this video, th-cam.com/video/EQbi-vO6yrA/w-d-xo.html.
ECAT is an interesting fund. It's weird because it's an ESG fund. It has over 1,000 holdings, including 46% of its bonds being above junk grade. 67% of assets are stock, and the fund doesn't use leverage like most CEFs. 1.8 billion market cap, and almost nothing but ROC since inception. The Blackrock site states that they write options. I'm not sure if the ROC is destructive or if it's a "tax treatment" as some managers refer to.
Hi @TheRealRaggedyAndy. The fund ECAT did just recently (end of Dec. 23) pay out ROC equal to 76% of its total distribution, but it appears that was a decision to balance out the negative earnings it accumulated shortly after the fund started. The fund isn't that old, so it's no surprise that they would want to focus on eliminating their negative earnings, which as of their reporting period ending June 24, they did succeed in doing. I would, however, keep my eye on earnings and ROC in the short-term. Thanks for the comment. Lee
Hi @sshumkaer, Rights Offerings are when a fund makes available new shares to existing shareholders, often times at some sort of discount to market price or net asset value price.
Neither GOF nor PDI is part of the 'income' section of my portfolio. Nevertheless I absolutely enjoyed the deep dive in both CEF. Many thx 🎉
Glad you enjoyed it and thanks for watching and commenting, @TotallyRegWhatelse. I know the vid was (GOF) and (PDI) specific, but I thought it would be helpful to show how all the moving parts work within a closed end fund. You might want to check out my latest vid on (CLM) and (CRF) as well. All the best. Lee
@@dividendtimes Yes, I checked the analysis of CLM and CRF as well (after this video). Amazing stuff! Including the 'new voice' ;-)
@TotallyRegWhatelse, Morgan Freeman stopped returning my calls, so I had to get a fill in. She did a pretty good job.
That is a great video,It is perfect that if you have more video about CEF🥰🥰🥰🥰
Thanks for the comment @qqcute4563. I do have a few vids up, and I will be posting more. This video is technically part two to this video, th-cam.com/video/EQbi-vO6yrA/w-d-xo.html.
How do they pay back money to become solid funds again?
@sshumkaer, could you be a little more specific with your question?
ECAT is an interesting fund. It's weird because it's an ESG fund. It has over 1,000 holdings, including 46% of its bonds being above junk grade. 67% of assets are stock, and the fund doesn't use leverage like most CEFs. 1.8 billion market cap, and almost nothing but ROC since inception. The Blackrock site states that they write options. I'm not sure if the ROC is destructive or if it's a "tax treatment" as some managers refer to.
Hi @TheRealRaggedyAndy. The fund ECAT did just recently (end of Dec. 23) pay out ROC equal to 76% of its total distribution, but it appears that was a decision to balance out the negative earnings it accumulated shortly after the fund started. The fund isn't that old, so it's no surprise that they would want to focus on eliminating their negative earnings, which as of their reporting period ending June 24, they did succeed in doing. I would, however, keep my eye on earnings and ROC in the short-term. Thanks for the comment. Lee
@@dividendtimes thanks!
I here people talk about Rights Offering but have no idea what that means. I have always DRIPed
Hi @sshumkaer, Rights Offerings are when a fund makes available new shares to existing shareholders, often times at some sort of discount to market price or net asset value price.
I only know for sure of CLM