NBI NTA, page-3

Hi Rick

I sold out of my entire holding last Monday for a 12% loss. My two cents:

- Re NTA. I feel it's probably too early for debts to be written off. I did read that credit spreads have blown out. The fall in NTA is more likely redemptions in the underlying fund.
- Why did I sell? I first bought in chasing yield, fully aware of the risks of junk bonds but also not expecting a GFC style event. Fast forward a few months and I'm simply not comfortable with the volatility and feel the risks now far outweigh the reward (~5% per annum). If this were an equities fund I'd be more inclined to hold given the potential upside. I feel the underlying investments will only deteriorate in time as some of these companies will surely come under pressure.

It all comes down to your risk profile and investment timeframe of course, but as above, the risk vs reward is just not worth it for me. Personally, I would wait for a bounce (tomorrow maybe?) and sell. FYI, I also hold MXT which admittedly has not been hit as bad, but I have a lot more confidence in the manager and underlying investments.