ST Alpha - "take a careful look at the fees associated with the funds - they can sometimes be higher than a similar open-ended fund -- nm" (Reading a Post)

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In response to "hmmm, interesting. -- nm" by ty97

take a careful look at the fees associated with the funds - they can sometimes be higher than a similar open-ended fund -- nm

Posted by decline (aka Decline) Apr 29 '22, 12:23

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Almost certainly. Apparently the dividends % is high though? I dunno -- nm - ty97 Apr 29, 12:28 11
- I think so (we don't deal with CE funds). - decline Apr 29, 12:33
- Most of their distributions are return of capital though, not dividends, which explains why they’re trying to raise more funds I guess. -- (edited) - znufrii Apr 29, 12:32 9
  - Out of curiosity, do you know if they’re reinvesting their distributions? -- nm - znufrii Apr 29, 12:43 4
    - I don't know much at all. Dad wants to talk to me tomorrow about is plan (I think in part for me to sanity check his analysis) - ty97 Apr 29, 12:44 3
      - I would make sure he realizes that most of the distribution is just getting his own money back, that he’s paying a sizable premium over NAV for the privilege -- (edited) - znufrii Apr 29, 13:04 2
        
        (imo it seems an overly complicated way to go about things) -- nm* - znufrii Apr 29, 13:15 1
        
        Also, note that the record date for the rights offering was April 18th, so if he bought after then he can’t participate. -- nm - znufrii Apr 29, 13:25
  - Could the premium be because people are buying in due to the rights offering? -- nm - ty97 Apr 29, 12:42 3
    - Probably not, it’s been consistently high for the last year, but increasing more recently due to stocks going down looks like. - znufrii Apr 29, 12:48
    - (As in: people are willing to pay above NAV to become an owner so they can take advantage of the rights offering to buy more? Would that make sense?) -- nm - ty97 Apr 29, 12:42 1
      - The opposite, really, because the rights offering may put downward pressure on the premium by increasing the number of shares available. -- nm* - znufrii Apr 29, 12:50

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take a careful look at the fees associated with the funds - they can sometimes be higher than a similar open-ended fund -- nm

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