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Douglas Albo
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Registered Investment Advisor. Prior experience includes 12-years as a Vice-President, Financial Advisor at Smith Barney and Morgan Stanley.
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Capital Income Management, LLC
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  • What Is It With NIE? 6 comments
    Mar 22, 2013 2:55 PM | about stocks: NIE

    By far the best performing equity fund from Allianz, both on an NAV and market price basis, and yet it cannot buy a bid. Will be close to a -13% discount after today if this keeps up.

    Allianz made a huge mistake not raising the distribution. NIE has performed so much better than NFJ or any of their other funds and yet nobody wants to own it because of its relatively low 6.25% yield vs. 10.9% for NFJ & 11% for NAI, two funds that haven't come close to NIE's NAV performance. I'm disgusted by Allianz.

    Disclosure: I am long NIE.

    Stocks: NIE
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Comments (6)
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  • poclerk
    , contributor
    Comments (364) | Send Message
     
    I, too, am long NIE.
    22 Mar 2013, 04:08 PM Reply Like
  • Jerbear
    , contributor
    Comments (559) | Send Message
     
    Long NIE. Do we hold or sell?
    22 Mar 2013, 09:09 PM Reply Like
  • poclerk
    , contributor
    Comments (364) | Send Message
     
    Certainly hold, just remember that it is correlated to the stock market.
    23 Mar 2013, 07:52 PM Reply Like
  • Douglas Albo
    , contributor
    Comments (600) | Send Message
     
    Author’s reply » Depends on your position holding. If an equal weight with other positions, its a hold. If its an overweight, like say 15% or more, then might want to cut back to an equal weight of 5% to 10%.

     

    In the short time I've owned it, it hasn't traded well despite its undervaluation. But that could change very quickly and I've seen that happen before. Its actually performed better at market than NFJ & NAI longer term but it really deserves a higher valuation considering its NAV outperformance. I'll re-visit ahead of next declaration when Allianz could, once again, raise.
    24 Mar 2013, 06:07 PM Reply Like
  • Left Banker
    , contributor
    Comments (1835) | Send Message
     
    When you wrote about NIE a while back I took a look. Well, let's just say that you can put me in the camp of "nobody wants to own it because of its relatively low 6.25% yield vs. 10.9% for NFJ & 11% for NAI." Performance just didn't look that good to me in the face of the modest (compared to its peers) distribution, so I couldn't see any reason. Even if you were correct and distribution was going to be raised, it just didn't seem to me like they would raise it enough.
    24 Mar 2013, 01:02 PM Reply Like
  • Pine Research & Trading
    , contributor
    Comments (163) | Send Message
     
    it would seem to me that if it was throwing off the cash necessary to make a higher distribution, that it would flow to the nav. for an investor it would be a wash over the long term (actually an advantage because of getting a large discount due to the lower yield). i'm thinking there might be a tax situation, but am i missing something?
    24 Apr 2013, 08:59 PM Reply Like
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