Performance of the HIMIPref™ Indices for January, 2008, was:
| Total Return | ||
| Index | Performance January 2008 |
Three Months to January 31, 2008 |
| Ratchet | -0.28% | +0.67% |
| FixFloat | -1.57% | -2.97% |
| Floater | +3.17% | -17.64% |
| OpRet | +0.47% | +1.75% |
| SplitShare | +0.31% | -1.01% |
| Interest | +1.37% | +1.04% |
| PerpetualPremium | +0.19% | +1.36% |
| PerpetualDiscount | +0.40% | +2.98% |
| Funds (see below for calculations) | ||
| CPD | +0.00% | -0.08% |
| DPS.UN | -0.97% | -0.21% |
The FloatingRate index bounced back (just a little bit!) from its disastrous performance in December. The tepid returns for the two perpetual sub-indices mask a great deal of excitement – at its peak on January 16 the PerpetualDiscount index was up 1.85% on the month, while at its trough on January 21 it was down 1.23%. The downdraft was caused by a new issue: BNS.PR.O, announced January 17. There was extreme fear that this could presage another hit to the market as happened in September, but by the time TD.PR.Q was announced January 22 the worst was over.
Claymore has published NAV data for its exchange traded fund (CPD) and I have derived the following table:
| CPD Return, 1- & 3-month, to January 31 | ||||
| Date | NAV | Distribution | Return for Sub-Period | Monthly Return |
| October 31, 2007 | 18.19 | |||
| November 30 | 17.97 | -1.21% | -1.21% | |
| December 24 | 17.75 | 0.2219 | +0.01% | +1.14% |
| December 31, 2007 | 17.95 | +1.13% | ||
| January 31, 2008 | 17.95 | 0.00% | 0.00% | |
| Quarterly Return | -0.08% | |||
The DPS.UN NAV for January 30 has been published so we may calculate the January returns (approximately!) for this closed end fund:
| DPS.UN NAV Return, January-ish 2008 | |||
| Date | NAV | Distribution | Return for period |
| December 27, 2007 | $21.07 | ||
| January 30, 2008 | $21.02 | $0.00 | -0.24% |
| Adjustment for December stub-period | -0.67% | ||
| Adjustment for January stub-period | -0.06% | ||
| Estimated January Return | -0.97% | ||
| CPD had a NAV of $17.83 on December 27 and $17.95 on December 31. The estimated December end-of-month stub period return for CPD was therefore +0.67%, which is subtracted from the DPS.UN total return when estimating the return for January. | |||
| CPD had a NAV of $17.96 on January 30 and $17.95 on January 31. The estimated January end-of-month stub period return for CPD was therefore -0.06%, which is added to the DPS.UN total return when estimating the return for January. | |||
Now, to see the DPS.UN quarterly NAV approximate return, we refer to the calculations for December:
| DPS.UN NAV Returns, three-month-ish to end-January-ish, 2008 | |
| November-ish | -1.14% |
| December-ish | +1.93% |
| January-ish | -0.97% |
| Three-months-ish | -0.21% |
[…] The competition was outpaced: the fund outperformed the closed-end fund (DPS.UN), which returned an estimated -0.97% on the month and an estimated -0.21% on the quarter, as well as the exchange-traded fund (CPD) which returned 0.00% and -0.28% on the month and quarter. Calculation details for these two performances have been posted separately. […]
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