Replies to post #148678 on Amarin Corp Plc (AMRN)

[Crikker]

Thanks STS

I would also add to be real careful with buying closed end funds only on stated yield. Many closed end funds have managed dividend policies. This means they are going to pay out a certain dividend whether they earn it or not. The additional amount above what they earned is a return of part of the principal of your investment. It is easy to hide the issues with this when the underlying assets are increasing in value but if the underlying assets are dropping in value and they are paying part of the principal back as part of a managed dividend policy you will see a significant drop in the NAV of the fund. This is often compounded because many closed end funds use leverage as well.

If you want to find out more about your closed end funds check out the closed end funds association website. Cefa.com. Good luck