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Strategies & Market Trends : Young and Older Folk Portfolio
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To: QTI on SI who wrote (21652)10/27/2025 9:41:30 PM
From: jritz04 Recommendations

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RE: The other issue that I see with NBXG is that the distribution is entirely RoC, so essentially it is returning investor's own money (see below).

You are looking at that all wrong. RoC is a good thing if the fund is earning the distribution which it obviously is. I own plenty of funds that purposly return RoC. NBXG has earned 28.68% return on NAV the last year so the Roc is not destructive. RoC turns income into long term capital gains when you sell. If you don't sell you pay nothing in taxes until your cost basis is zero. You could get tax free income while you hold and the heirs will get the stepped-up basis when the holder dies.

I can guess that NBXG pays Roc because of the losses they took the first couple of years because of the horrible timing when they came to market. I would imagine they are using losses from those years to offset the gains from the last couple years.

NBXG is my largest CEF holding and I started buying in June of 2023 and have a 40.28% ROI. I also don't care about tax qualifications since it's held in tax free/tax deferred accounts.
Saba and City of London Investment Management are the largest holders and both are activist managers. I would expect some pressure from them to close the discount.

In the words of Forrest Gump "And that's all I have to say about that" :)
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