I am invested in JPS - Nuveen Quality Preferred Income Fund 2. It's a closed end fund investing in high dividend paying companies. They pay a very attractive dividend. The price has been going down a little lately so I've been dollar-cost average buying on the decline. I started investing in them right around the October 2008 crash so I'm already up 100% or more. I attribute the decline mainly to two factors:
1. They went up too fast and peaked. Hedgers saw this and sold at the top.
2. I believe the instability of financials is partly to blame since quite a few of their top holdings are banks that pay dividends. Last published, 4 out of their top five were these financial institutions: Wachovia, Barclays, Deutsche Bank, Rabobank Nederland
But they also invest in many other non-financial companies, many of which are doing quite well. So I expect this fund to not-only recover to their 52-week high but surpass it significantly, especially if we see a more permanent recovery in financials. Overall, I think it's one of the best quality holdings in my portfolio at the moment.
I'd like to hear your comments on the reason for this decline in JPS and related funds.