October 25, 2007
Neuberger Berman recently announced their plans to combine two of their funds - NRI and NRO into NRO. This will supposedly make for a much larger fund than each on their own along with a lower expense ratio and hopefully a narrowing of the discount. Since Neuberger Berman went to a fixed distribution policy back in May (using earnings, capital gains and a return of capital, if necessary), the discount has not narrowed for either NRI or NRO. Until the shareholders either approve or disapprove the merger, no indication has been given as to how that may affect the dividend we are currently receiving. November and December's dividend has already been approved and I already incorporated that in the Dividend History page in IP. So if they closed up shop today the NAV is worth more than the share price which it has been all along. Real estate right now is just unloved.
I will give you more information as soon as I see more from the company.
Hope you had a good day.
Pete Lipke
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