1/9/2015
Aberdeen Asia-Pacific Income Fund Inc (NYSE MKT LLC:FAX )
A friend recommend this fund, since a friend of his puts literally all his money in it. The rest of you should stop reading because this is a pass.
Price at write-up $5.63
Target
Valuation Ratios
Price/Earnings (TTM) . . . . .58.41
Price/Sales (TTM) . . . . . . . 13.24
Earnings per share . . . . . . .0.09
Price/Book (MRQ) . . . . . . . 0.83
Price/Cash Flow (TTM) . . . .NA
Held by institutions . . . . . .20.21
Dividend . . . . . . . . . . . . . . 0.42/7.46%
So . . . it's trading at a 10% discount to it's assets, so there's that. But it's total return is poor only outperforming 27% of other funds, and we do better than that. In the last 5 years it's returned between 4.69% and -4.1%. It's price has dropped by 30.2% in the past 3 years. The only people making money off this fund are the instigators at around 2% of the fund's value yearly.
MarketCap 1.4B
There are much better alternatives, management costs are too high for a fund of this nature, even if you think the exposure is a good idea.
Due diligence would be literally any other income fund. At the moment I like (and own) GBAB, MAIN, SDY, TLT, DLTNX, RWO, CAPFX, VYM . . .
Aberdeen Asia-Pacific Income Fund Inc (NYSE MKT LLC:FAX )
A friend recommend this fund, since a friend of his puts literally all his money in it. The rest of you should stop reading because this is a pass.
Price at write-up $5.63
Target
Valuation Ratios
Price/Earnings (TTM) . . . . .58.41
Price/Sales (TTM) . . . . . . . 13.24
Earnings per share . . . . . . .0.09
Price/Book (MRQ) . . . . . . . 0.83
Price/Cash Flow (TTM) . . . .NA
Held by institutions . . . . . .20.21
Dividend . . . . . . . . . . . . . . 0.42/7.46%
So . . . it's trading at a 10% discount to it's assets, so there's that. But it's total return is poor only outperforming 27% of other funds, and we do better than that. In the last 5 years it's returned between 4.69% and -4.1%. It's price has dropped by 30.2% in the past 3 years. The only people making money off this fund are the instigators at around 2% of the fund's value yearly.
MarketCap 1.4B
There are much better alternatives, management costs are too high for a fund of this nature, even if you think the exposure is a good idea.
Due diligence would be literally any other income fund. At the moment I like (and own) GBAB, MAIN, SDY, TLT, DLTNX, RWO, CAPFX, VYM . . .