Allianzgi Convertible & Income Fund (NYSE:NCV)

CAPS Rating: 3 out of 5

Closed-end management investment company

Recs

1
Player Avatar unkownuser (98.12) Submitted: 12/23/2010 11:08:17 PM : Outperform Start Price: $8.14 NCV Score: +1.01

I have been in and out of NCV & NCZ (mostly in) for the past few years. Their holdings are generally corporate bonds & convertible securities. Premium to nav is reasonable, and the return has been phenomenal. These closed end funds pay a monthly dividend of close to 1% like clockwork (between 10-11%/yr depending on the share price you buy at). With the special year end dividend just announced, they will both return around 12% this year, with a bit of capital appreciation to boot. The risk I guess, is rising interest rates. Until I see signs that interest rates are set for a substantive increase and change to a rising trend, I think NCV & NCZ are safe.

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