"Fidelity shows AMZA does not use leverage - in fact, every website I
use for ETFs and CEFs shows no leverage - where did you find that info?"
The leverage information for AMZA is available in their semi-annual
report dated 04-30-17 and released to the public on 07-07-17.
Page 57......(As of 04-30-17)
Liabilities:
|
|
|
|
|
|
|
Borrowings |
|
|
|
|
102,811,369 |
|
Due to broker |
|
|
|
|
1,458,008 |
|
Payables: |
|
|
|
|
|
|
Investment securities purchased |
|
|
|
|
7,839,703 |
|
Sub-advisory fees |
|
|
|
|
277,078 |
|
Deferred income tax liability |
|
|
|
|
7,123,126 |
|
Written options, at value (a) |
|
|
|
|
3,224,444 |
|
Securities sold short, at value (b) |
|
|
|
|
13,777,479 |
|
Other accrued expenses |
|
|
|
|
756,429 |
|
Total Liabilities |
|
|
|
|
137,267,636 |
|
Net Assets |
|
|
|
$ |
368,077,247 |
|
|
Page 67....
8. BORROWINGS
The
Fund entered into a Lending Agreement (the
“Agreement”) with a commercial bank (the “Bank”) that allows the Fund to
borrow cash from the Bank. Borrowings under the Agreement
are collateralized by investments of the Fund. If the Fund defaults with
respect to any of its obligations under the Agreement, the Bank may
foreclose
on assets of the Fund and/or the Fund may be required to repay
immediately, in part or in full, the loan balance outstanding under the
Agreement,
necessitating the sale of securities at potentially inopportune times.
Interest is charged at the 3 Month LIBOR (London Interbank Offered Rate)
plus an
additional percentage rate on the amount borrowed. The Agreement has an
on-demand commitment term. For the period ended April 30, 2017, the
average
daily borrowings under the Agreement and the daily average interest rate
were $68,765,083 and 2.24%, respectively.