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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Bernie Goldberg who wrote (17076)	10/15/2001 8:23:29 AM
From: rgammon	Read Replies (3) \| Respond to of 18931

Bernie, I remembered that ACG had some 10+% bonds in its portfolio, but not what the weightings and maturities were. It would then seem that the 0.84 annualized dividend (last monthly x 12) is relatively secure. Indeed, it has paid between 0.075 to 0.065/share/mo for the last year (currently 0.07/share/mo). In the current risk environment, investors have bid ACG to return 9.8%/yr. I can't predict the future, so I have no way to say whether this price/yield level will increase or decrease, all I can say is that it WILL change. Arcane mathematical formulae indeed!! All I have discussed is the mathematical properties of AIM!! Ok, that may be arcane to the vast majority of investors, but not to us. I'll admit that it does make me a bit uncomfortable to think of buying one of these funds at a premium, yet when I look at the AIM model, it tells me not to worry about it. When prices return to a discount to NAV, and/or when interest rates start rising again, and/or the current risk environment changes, AIM will let us buy some of the 'cheap' shares. Robert ( Call me Mr Arcane!!)