MAPF: Probable Capital Gain Distribution at Year-End

I am pleased to announce that it is probable – virtually certain might be more accurate! – that Malachite Aggressive Preferred Fund will make a Capital Gains Distribution at year-end. This will be the first Capital Gains Distribution since 2012!

There was a long, hard bear market during much of the intervening time, but the past three years have been excellent and made the long-term returns look much more like they should. Thirteen year returns for the fund are +6.16% (annualized, after expenses but before fees), while the comparable TXPR Total Return Index return is +3.80%. It is of interest to note that the the TXPR Price Index closed at 693.26 on October 31, while it stood at 856.99 on 2012-12-31.

As of October 31, 2025, the NAVPU of the fund was 12.1172. This figure incorporated the following per-unit elements:

• Prior Losses Carried Forward: -0.101700
• Realized Capital Gains: 1.264479
• Unrealized Capital Gains: 1.218465

The latter two figures will vary, perhaps dramatically, between now and year end, when the actual Capital Gain Distribution (assuming that Realized Capital Gains continues to dominate the Prior Losses Carried Forward!) will be calculated. It will all depend on what the market does between now and then and how much trading there is: I cannot forecast the effect of either of these influences.

Clients have been sent letter with this information, together with estimates of their total CG Distribution based on October 31 figures. Their current choices for distribution disposition (pay-out vs. reinvest is the main decision) are specified in the letter as a reminder (after so long!).

I am providing this information to clients so that they may ensure that the disposition of the (still potential, at this stage!) CG Distribution meets their current needs and, perhaps, engage in any tax planning that may be necessary, as any CG Distribution will be reported on the 2025 T3 Tax Slip.

Clients – and those who want to become clients! – may contact me for details and updates at their convenience.