Most ETFs have market makers to ensure liquidity through having sufficient buy/sell orders in place. The market makers make their money through the buy/sell spread.
I can't imagine that a fund as small as FPC would have a market maker (who would do it, as where are the buyers going to come from to pay NTA when they aren't there now at 20% discount to NTA?).
And the audacity for them to quote reaching -11% of NTA at a certain date in November!! It was probably for all of 5 minutes and orchestrated so that they could quote an 11% figure. FPC has mostly been at 20% or more discount to NTA throughout its sorry life.
But big benefits for Fat Prophets, as I can imagine two streams of income - one from managing the ETF and the other from FPC management and Board fees - not to mention the money going to the lawyers and others to set up a new vehicle.
If they were really concerned about the discount to NTA they would just wind the thing up and put us all out of our misery!!!
FPC Price at posting:
$1.17 Sentiment: Hold Disclosure: Held
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