Dallas, Texas 11/08/2013 (Financialstrend) – Nuveen NY Municipal Value (NYSE:NNY) is a close ended debt fund which has a market cap of $132 million. It has paid out dividends of $0.37 per share over the past 12 months. This translates to a 4.23% dividend yield for the same period. The fund managers operate 87 close ended funds which declared their regular monthly distribution for November.
Nuveen operating philosophy is to payout monthly returns which are commiserate with its projected returns and past earnings. Hence the close ended funds would have paid out more less in comparison to the net monies which have been earned as income by the fund in any given period. If the fund manages to generate more income than what has been disbursed, then the top up is held in trust by the fund under its “undistributed net investment income” header and is used to calculate the overall net asset value of the fund. On the other hand if the fund ends up paying out more than its periodic earnings, then the deficit will again be considered as “negative undistributed net investment income” and will drag down the net asset value of the fund. This is the case in point for Nuveen currently. Due to underperforming investments, the fund is paying out more to its share holders than income it is generating, hence casting downward pressure on the NAV of the stock.
As of close of business on November 6, the shares of this close ended fund were trading at $8.75 per share which is 0.23% lower than its previous day close. At current valuations, the fund value is 0.57% above its 52 week low price point of $8.7 per share. In the past one quarter the fund has seen its market value go down by 1.57%. Investors would be hoping the performance improves soon.