Malachite Aggressive Preferred Fund has been valued for August, 2007, month-end. The unit value is $9.3309. Returns over various periods are:
|MAPF Returns to August 31, 2007|
|Two Years (annualized)||+4.63%|
|Three Years (annualized)||+5.26%|
|Four Years (annualized)||+8.32%|
|Five Years (annualized)||+10.26%|
|Six Years (annualized)||+9.74%|
Returns assume reinvestment of dividends, and are shown after expenses but before fees. Past performance is not a guarantee of future performance. You can lose money investing in Malachite Aggressive Preferred Fund or any other fund. For more information, see the fund’s main page.
The fund underperformed this month; there were two major reasons for this:
- A position in BAM.PR.M / BAM.PR.N underperformed. What can I say? The fund bought them when they were cheap (according to me!) and they promptly declined to a level where they’re stupid-cheap (according to me!). It happens. Volume in these issues has picked up substantially since the mid-month price collapse and the price has recovered somewhat.
- The fund has a large weighting in split-shares, which underperformed this month. The market is currently deeply discounting split shares as a class, as I noted in a post on August 28
A disappointing month, but beating the index every single month is a difficult thing to do! I’ll just keep grinding away and swapping issues when the odds (according to me!) are in my favour.
Claymore has published their final monthly numbers and I have derived the following table:
|CPD Return, 1- & 3-month, to August 31|
|Date||NAV||Distribution||Return for Sub-Period||Monthly Return|
|May 31, 2007||19.44|
|July 31, 2007||18.95||0.00%||-0.11%|
|August 31, 2007||19.04||+0.47%||+0.47%|
It should be explicitly noted that the CPD returns are shown AFTER ALL FEES AND EXPENSES, while the MAPF numbers are shown after expenses, but before fees … so to make the numbers more comparable, take the annual fee from the fund’s web page and divide by the appropriate number to obtain the period’s fee.
So, while August’s returns were sub-par, the quarterly number still looks very good.
Trading in August was actually very quiet (with the exception of a BAM.PR.M / BAM.PR.N swap). Volumes were low, spreads were high; I put in quite a few limit orders to try to take advantage of the high spreads, but there were only a few traders out there sufficiently desperate to trade that they were willing to accept my lousy prices. A return of volume in September will, I hope, lead to increased trading possibilities.
The DPS.UN NAV for August 29 has been published, so we can calculate the August-ish returns for it:
|DPS.UN NAV Return, August-ish 2007|
|Date||NAV||Distribution||Return for period|
|August 1, 2007||$22.23|
|August 29, 2007||$22.14||$0.00||-0.41%|
|CPD had an NAV of $18.95 on July 31 and $18.97 on August. The beginning-of-month stub period return for CPD was therefore +0.11%.CPD had a NAV of $18.94 on August 29 and $19.04 on August 31. The end-of-month stub period return for CPD was therefore +0.52%.Inclusion of these two stub periods will therefore have the net effect of increasing DPS.UN’s returns by about 0.63%; adding this to the measured returns for the measured period results in a August-ish return for DPS.UN of +0.22%.|
|DPS.UN NAV Returns, three-month-ish to end-August-ish, 2007|
So we have the same pattern: underperformance over a one-month period, but out-performance over three months.
Note that the DPS.UN returns are net of all fees and expense, while the MAPF returns shown above are after expenses, but BEFORE FEES.
To see MAPF performance for a wide variety of periods, with comparisons to the BMO Capital Markets 50 Index (formerly the BMO-NB 50 Index), please see the fund’s main page, where there are numerous links under the heading “Performance”.
Update: Portfolio composition as of August 31 is discussed here.