Archive | January 3, 2013

Artio Global High Income Mutual Fund (BJBHX): I Bailed With Regret.

Anura Guruge, laughing, picture November 16, 2011.

….

..by Anura Guruge


Last investment related post:
>> The 2012 Special Dividends: Selling Short … — Dec. 3, 2012.


I got back in in March 2013 and have stuck with
it through thick and thin.

See posts one & two.


Artio


Artio Global High Income Fund (BJBHX) is what has kept me afloat, with my head just above water, for the last 3.5 years. I adored it, sang its praises and recommended it, all the time. It WAS a great fund. Of non-institutional mutual funds (not counting the semi-cannibalistic closed end funds (CEFs) that distribute some of their capital as distributions) it had the highest monthly dividend I could find (relative to NAV), with a 0.02 variation between months. There were also period of genuine growth.

60% of my meager, severely depleted savings were in BJBHX and until last Friday (December 28, 2012), I never gave it much though. BJBHX had been ‘a keeper’. Come December I start scouring the Artio Website for their year end distributions. Yes, I found this year’s, and as ever it was a range. The minimum was 0.03 per share. Last week I called them twice trying to see if they can get me a better idea. They wouldn’t.

They paid the December 2012 dividend on the night of December 27. It was 0.03! For 12 hours I consoled myself thinking that this was just a special year end distribution and that they would do their normal monthly distribution on December 28, the 28th their usual target date for distributions. I was wrong. 0.03 was it for December.

The November distribution had been 0.07. ‘Marketwatch‘ had 0.07 as their ‘Income Dividend’. They had never been below 0.05 in all of 2012. They had never done just a 0.03 in years.

I felt raped. If they had given us a head’s up, I would not have felt so bad. I called them twice last Friday. Their telephone support isn’t in the same class as Fidelity.

I called them again yesterday and asked whether I could speak directly to a Fund representative. To their credit they said they would try and that they will try and get somebody to call me.

But, prior to the 4pm market close, I placed an order to sell all my shares in BJBHX.

The phone rang at 4:20. It was somebody from BJBHX. He was very nice. He understood my issue. It appears that due to foreign currency fluctuations BJBHX had a trading loss for the year. So rather than distributing capital gains, they had loses. The 0.03 was a reflection of that. He claimed that dividend would go back to ‘normal’ in 2013. To late. I had already sold and BJBHX has a very strict re-investment policy to protect holders against churn. So if you sell, you typically can’t get back for 30 days. It is in the prospectus. But, emotionally I am done with BJBHX, though I know that you can’t let emotions influence your investing.

I could be wrong, but as far as I can see, I cannot find another non-instutional, non 5% up-front load, ‘open’ (as opposed to ‘closed’) mutual offering monthly distributions of 0.07 per share on a $10 NAV — and I check each month on Yahoo finance, because the ‘summary’ rate quoted on sites like ‘Marketwatch‘ can be way out-of-date.

The nearest I can find is Janus High Yield, JAHYX. JAHYX is my backup. They maintain a fairly steady NAV. FHYTX and TGINX are close.

I don’t trust CEFs. Too many games for non-insiders, so to speak. So I stay away. Yes, I get tempted, but I refrain. I have good will power. Looking at some MoPay stocks. Interesting. But, bottom line, BJBHX and I have parted company.

Wow, It Is Cold Up Here. Too Cold To Go Running. Below My 5°F (-15°C) Threshold.

Anura Guruge, laughing, picture November 16, 2011.

….

..by Anura Guruge


Last weather related post:
>> New Hampshire Again Becomes A Winter Wonderland …
>>Dec. 31, 2012.


5 day forecast for Alton, NH for the start of 2013. It is supposed to warm up. Click to ENLARGE.

5 day forecast for Alton, NH for the start of 2013. It is supposed to warm up. Click to ENLARGE.

With the sun beating down and the clouds low and wispy it is warming up. It is now, at 11:40 am, a balmy 16°F (-8°C).

It was very cold last night and this morning. At 9:30 am, which is when I typically think about going running, it was close to 0°F (-17°C), below my self-imposed 5°F (-15°C) threshold to go running. Even running at 5°F is interesting. I wear hard gas permeable contact lenses — and they can freeze on the outside! Now I wear glasses.

Most of my relatives, including my father, are continually amazed that this bitter cold of NH does not drive me nuts. The truth me known, after 26 years of living here, I have become quite well acclimatized, quickly adapting to my surroundings being a trait of mine — and that I lived in 4 countries in four years: Colombo, Ceylon (1967), Buffalo, U.S.A. (1968), Paris, France (1969) and London, U.K. (1970), kind of helped. I am probably better at dealing with the cold than most, though, of course, the generous layer of blubber I carry is a factor. I really am ‘OK’ as long as the temperature is ABOVE ‘0°’, Fahrenheit. That is -17°C.

32°F, 0°C, is a heat-wave during winter. At that temperature I shovel snow in a T-shirt.

Growing up, in Colombo, Ceylon (now Sri Lanka), the temperature never fell below 70°F. Temperature was something that was never talked about or commented, when I was growing up. It was basically the same everyday. I never saw snow until I was 14 and came to live in Buffalo.

I very rarely do this, but on a lark I went and checked the weather for Colombo. Amazes me that Deanna won’t even consider moving to Colombo, now a thriving capital with the civil war all but a past nightmare.

Click to ENLARGE

Click to ENLARGE

Well, it is supposed to warm up tomorrow. Into the 30s. Wow. Will feel like Spring. Enjoy.

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