12/17/2007 NEW YORK, Dec 17, 2007 (BUSINESS WIRE) --
The Board of Directors of Neuberger Berman Dividend Advantage Fund Inc. (the "Fund"), which trades on the American Stock Exchange under ticker symbol NDD, has declared a special distribution of $3.74050 per share payable on January 15, 2008 to shareholders of record on December 31, 2007 with an ex-date of December 27, 2007. The special distribution helps the Fund meet its 2007 distribution requirements for federal tax laws.
The distribution declared today, as well as future distributions, may consist of net investment income, realized capital gains and return of capital.
In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would be provided for any distribution that does not consist solely of net investment income. This notice would be for informational purposes, and would disclose, among other things, estimated portions of the distribution, if any, consisting of net investment income, capital gains and return of capital.
Neuberger Berman Management Inc., the Fund's investment manager, is a subsidiary of Neuberger Berman Inc., an investment advisory company serving individuals, families, and taxable and non-taxable institutions with a broad range of investment products, services and strategies. A Lehman Brothers company, Neuberger Berman engages in wealth management services including private asset management, tax and financial planning, and personal and institutional trust services; and mutual funds, institutional management and alternative investments. For further information about Neuberger Berman please visit www.nb.com.
Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. For further information about Lehman Brothers' services, products and recruitment opportunities, visit the Firm's Web site at www.lehman.com.
Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
SOURCE: Neuberger Berman Dividend Advantage Fund Inc.
Neuberger Berman Management Inc. Investor Information: 877-461-1899 Copyright Business Wire 2007
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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Year-End Selling Trade: Closed End Funds At Big Discounts posted on: December 17, 2007 | about stocks: ERC / MCA / NBH / NWI / PPM Print Email The phenomenon of closed-end funds getting cheaper at the year-end and rebounding is another type of January effect that is well known but not without risk; it is well known and yet it continues to exist. Part of the reason may be that the lack of liquidity keeps any hedge fund and bank trading desk from taking advantage of it. I know that there are funds that engage in closed-end fund trading strategies but there always seems to be room at year-end for this one to work.
I've been buying fixed income closed-end funds at a cheap, but by no means unprecedented, 13-15% discount to NAV (Net Asset Value) this year-end. The cheapness usually disappears with the changing of my calendar to a new year and that is when I take profits. I will exit this trade based only on the cheapness of the funds to NAV. I risk the bond market falling (interest rates going up) or the bond portfolios underlying the closed-end funds collapsing for some other reason such as credit concerns or a liquidity crisis, just as we have seen this past quarter. And while they carry bonds that are greater than normal because some funds are leveraged, they also carry yields from four to seven percent that are nicely at or above the Fed Funds rate.
So what did I buy this week? Here is the list of four municipal bond funds and one taxable income fund.
Nuveen Maryland Dividend Advantage Municipal Fund 3 (NWI) ($12.27) BLACKROCK MUNIYIELD (MCA) ($12.50) Neuberger Berman Intermediate Municipal Fund Inc. (NBH) ($12.55) Investment Grade Municipal Income Fund (PPM) ($12.70) Evergreen Multi-Sector Income Fund (ERC) ($15.63)
I'm still searching around for more.
Disclosure: I own and bought every closed end fund mentioned above. I may buy more. I will likely sell in the first quarter next year or if the discounts on the flunds close to less than 7% before then.
David Neubert About this author: Bio & more articles Visit author site Become a Contributor Submit an Article
Posts: 3255 | From: Los Angeles California | Registered: Jan 2006
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