Behind The Yield: A Closer Look At NCV

Impact · against what's priced in

NCV faces significant downward pressure due to the revelation that its yield is sustained by return of capital, leading to permanent NAV erosion. The combined risk of high leverage (32.7%) and a high expense ratio (4.20%) suggests the fund's current payout is unsustainable.

NCV−0.70

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In context

The fund's 9.6% yield is misleading as it relies on return of capital, resulting in long-term NAV erosion and a high expense ratio of 4.20%.

Read from the article alone

• NCV
• convertible funds
• dividend yield
• expense ratio
• high yield
• junk bonds
• leverage
• nav erosion
• return of capital

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