{"id":1774,"date":"2008-02-05T16:53:41","date_gmt":"2008-02-05T20:53:41","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=1774"},"modified":"2008-02-05T16:53:41","modified_gmt":"2008-02-05T20:53:41","slug":"mapf-performance-january-2008","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=1774","title":{"rendered":"MAPF Performance : January, 2008"},"content":{"rendered":"

Well, that’s a relief!<\/p>\n

After a\u00a0month’s superb performance – up 4.50% in December<\/a> – \u00a0there is often a pullback. Perhaps some issues were expensive\u00a0at month-end, for instance, not by enough to trade (or they would have been traded), but by enough so that all holdings were at the top of their range and all had a downward bias for the next time.<\/p>\n

Not this month! I’m very pleased to say that Malachite Aggressive Preferred Fund has been valued for\u00a0January,\u00a02008,\u00a0month-end; the unit value is $9.1224. Returns over various periods are:<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
MAPF Returns to\u00a0January 31, 2008<\/td>\n<\/tr>\n
One Month<\/td>\n+1.28%<\/td>\n<\/tr>\n
Three Months<\/td>\n+5.66%<\/td>\n<\/tr>\n
One Year<\/td>\n+0.61%<\/td>\n<\/tr>\n
Two Years (annualized)<\/td>\n+3.06%<\/td>\n<\/tr>\n
Three Years (annualized)<\/td>\n+3.95%<\/td>\n<\/tr>\n
Four Years (annualized)<\/td>\n+5.82%<\/td>\n<\/tr>\n
Five Years (annualized)<\/td>\n+9.79%<\/td>\n<\/tr>\n
Six Years (annualized)<\/td>\n+8.59%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

Returns assume reinvestment of dividends, and are shown after expenses but before fees. Past performance is not\u00a0 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<\/a>.<\/p>\n

The competition was outpaced: the fund outperformed the\u00a0closed-end\u00a0fund (DPS.UN), which returned an estimated\u00a0-0.97% on the month and an estimated\u00a0-0.21% on the quarter, as well as the exchange-traded fund (CPD) which returned 0.00% and -0.28% on the month and quarter.\u00a0Calculation details for these two performances have been posted separately<\/a>.<\/p>\n

\u00a0The yields available on high quality preferred shares remain elevated, which is reflected in the current\u00a0estimate of sustainable income<\/a>.<\/p>\n

\n\n\n\n\n\n\n\n\n
Calculation of MAPF Sustainable Income Per Unit<\/td>\n<\/tr>\n
Month<\/td>\nNAVPU<\/td>\nPortfolio
\nAverage
\nYTW<\/td>\n		Leverage
\nDivisor<\/td>\n		Sustainable
\nIncome<\/td>\n<\/tr>\n
June, 2007<\/td>\n9.3114<\/td>\n5.16%<\/td>\n1.03<\/td>\n0.4665<\/td>\n<\/tr>\n
September<\/td>\n9.1489<\/td>\n5.35%<\/td>\n0.98<\/td>\n0.4995<\/td>\n<\/tr>\n
December, 2007<\/td>\n9.0070<\/td>\n5.53%<\/td>\n0.942<\/td>\n0.5288<\/td>\n<\/tr>\n
January, 2008<\/td>\n9.1224<\/td>\n5.92%<\/td>\n1.00<\/td>\n0.5400<\/td>\n<\/tr>\n
NAVPU is shown after quarterly distributions.<\/em><\/td>\n<\/tr>\n<\/table>\n<\/div>\n

It should be noted that I do not have this calculation audited in any way, so once the audited financials are available you will not be able to see an explicit\u00a0confirmation of\u00a0these figures, although you will be able to derive the year end figure for yourselves. Readers should also note that the fund is indifferent to whether investment returns are in the form of capital\u00a0gains or dividends\u00a0– portfolio management seeks to maximize total return after tax for a notional\u00a0high-marginal-rate investor based in\u00a0Ontario.\u00a0It should also be noted that this sustainable income figure is not targetted in any manner; it may well go down if, for instance, it is decided that quality is cheap and trades are executed to increase credit quality at the expense of yield.<\/p>\n

For all that, though, there is a point to the calculation – it shows that in the recent past, and subject to the usual warning that historical performance is not necessarily indicative of future returns:<\/p>\n