Malachite Aggressive Preferred Fund has been valued for October, 2007, month-end. The unit value is $8.8084. Returns over various periods are:
| MAPF Returns to October, 2007 | |
| One Month | -3.72% |
| Three Months | -4.72% |
| One Year | -3.06% |
| Two Years (annualized) | +1.52% |
| Three Years (annualized) | +3.13% |
| Four Years (annualized) | +6.08% |
| Five Years (annualized) | +9.87% |
| Six Years (annualized) | +7.95% |
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 October returns are disappointing. As has been stated in the post regarding portfolio composition, the fund made a major move into the PerpetualDiscount sector during the course of the month. The sector looked thoroughly undervalued at the time of the trades … but it just kept on going down. The ghastly performance of the PerpetualDiscount sector has been discussed elsewhere.
As noted in the discussion of portfolio composition, I am very happy with the portfolio as it stood on October 31. HIMIPref™ was, perhaps, too early in determining that sufficient value existed in the sector to be worth a switch – and a switch between sectors requires a much greater increase in value than an intra-sector trade – but that’s the way it goes sometimes. A less sensitive system would miss potentially profitable trades.
More later.
[…] The quarterly performance still reflects October’s poor performance, which I attributed last month to a move into perpetualDiscount issues that proved to be somewhat early. However, given the quarterly performance of CPD (-4.52%) and DPS.UN (-3.87%), I think I am justified in thinking that the past three months, while disappointing and not reflective of the returns I aim to achieve for clients, have not been a disaster for the fund, which has a superb yield while retaining good credit quality and liquidity. […]
[…] The quarterly performance includes October’s poor performance, which I have attributed to a move into perpetualDiscount issues that proved to be somewhat early. The move has now been amply rewarded, as volatility in December provided the setting for several profitable trades. The yields available on high quality preferred shares remain elevated, which is reflected in the current estimate of sustainable income. […]