Bloomberg Article on Bill Gross’s PHK Fund & CEFA’s Additional Commentary
John Cole Scott was a source for the article that featured PIMCO High Income Fund: (NYSE: PHK). We have included the inception discount/premium graph, dividend history chart, key distribution information table and NAV performance vs Peer-average from chart CEFConnect bellow.
PHK’s Historical Discount/Premium Chart:
PHK’s Dividend History:
Since November 2011 it has been classifying 27% of its monthly dividend as Return of Capital. With leverage of 37.81% and a NAV yield of 19.09% this equals around 15.85% of income based-yield and 11.49% un-leveraged income-based yield. Bill is an excellent portfolio manager, but in the current market environment we believe he is required to take above normal risk in his security selection to achieve this level of income production.
- Earning Coverage Ratio is only 70.7% (earning per share / dividend amount)
- Relative UNII is -42.5% (current UNII balance / annualized income dividend)
Note: CEFA likes to see an Earning Ratio over 100% and Relative UNII of +12.5% for bond funds. It is worth noting that is information is becoming somewhat stale as it was updated on 9/30/11. We prefer UNII and earning data 2-4 months old.
PHK’s NAV Performance vs Peer-Group’s NAV Performance
It was a well researched and well written article, but we thought these three graphs help put the story into better perspective.