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Saturday, December 29, 2007

Enervest Diversified Income Exchange Traded Fund (EIT.UN-T) Is Trading At A 20% Discount to Net Asset Value

Enervest Diversified Income Exchange Traded Fund (EIT.UN-T) Is Trading At A 20% Discount to Net Asset Value.

At the close of trading on December 27, 2007 the units of this exchange trade fund closed at $5.23. Meanwhile its Net Asset Value (NAV) is $6.61. This is a discount of $1.38 which translates to a discount of 20.7%. This is extraordinary and unprecedented.

The fund is paying out $0.07 per month distribution which translates to a yield of 16.1%.

I think this fund should trade at a discount of 10% so I expect a 10% pop in the unit price unless the NAV collapses.

In interest of full disclosure I still own 15,000 units and I suggest you conduct your own due diligence. Click here to learn more.

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