The fund had a good month in April, with substantial outperformance against its benchmark.
| Returns to April, 2008 | ||
| Period | MAPF | Index |
| One Month | +0.73% | +0.07% |
| Three Months | -0.38% | -1.09% |
| One Year | +0.40% | -5.61% |
| Two Years (annualized) | +3.49% | -0.83% |
| Three Years (annualized) | +4.45% | +0.57% |
| Four Years (annualized) | +5.75% | +1.84% |
| Five Years (annualized) | +9.40% | +2.72% |
| Six Years (annualized) | +8.10% | +3.26% |
| Seven Years (annualized) | +9.22% | +2.92% |
| The Index is the BMO-CM “50” | ||
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 yields available on high quality preferred shares remain elevated, which is reflected in the current estimate of sustainable income. The figures for YTW and Leverage Divisor were disclosed in the discussion of the April month-end portfolio composition.
| Calculation of MAPF Sustainable Income Per Unit | |||||
| Month | NAVPU | Portfolio Average YTW |
Leverage Divisor |
Securities Average YTW |
Sustainable Income |
| June, 2007 | 9.3114 | 5.16% | 1.03 | 5.01% | 0.4665 |
| September | 9.1489 | 5.35% | 0.98 | 5.46% | 0.4995 |
| December, 2007 | 9.0070 | 5.53% | 0.942 | 5.87% | 0.5288 |
| March, 2008 | 8.8512 | 6.17% | 1.047 | 5.89% | 0.5216 |
| April, 2008 | 8.9156 | 6.09% | 1.034 | 5.89% | 0.5251 |
| NAVPU is shown after quarterly distributions. “Portfolio YTW” includes cash (or margin borrowing), with an assumed interest rate of 0.00% “Securities YTW” divides “Portfolio YTW” by the “Leverage Divisor” to show the average YTW on the securities held |
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It is noteworthy – well, I consider it noteworthy – that the “Securities YTW” remained constant during the month despite the increase in portfolio credit quality during the period. The intent (insofar as a purely quantitative system can be said to have an intent) is to sell that quality back to the market as soon as it is not quite so cheap.
The slight increase in “Sustainable Income” is largely due to the accumulation of one month’s worth of dividends, which have been received by the fund but not yet paid to unitholders.
I will post more discussion later.