MAPF Returns: December 2006

The monthly return for Malachite Aggressive Preferred Fund has been calculated.

The unit price as of December 29, 2006, was $9.6213 after distribution of $0.121966 Capital Gains and $0.180846 Dividends.
Returns may therefore be calculated as:

Periods Ending December 29, 2006 Return (see Note)
Month +0.94%
Quarter +3.32%
Year +6.89%
Two Years (Annualized) +6.40%
Three Years (Annualized) +8.69%
Four Years (Annualized) +14.43%
Five Years (Annualized) +11.65%
MAPF returns are shown after expenses, but before fees.

Note that past performance should not be taken as a guarantee of future performance. You can lose money investing in MAPF or any other investment.
“But what about risk?” you ask, and I’m glad you asked that question. The following data is based on the Value Date portfolio.

All issues held in the portfolio are rated Pfd-2(low) or better by DBRS. 45% are rated Pfd-1(low) or better, 53% are rated either  Pfd-2(low) or Pfd-2, 2% of the portfolio is cash.

The composition of the portfolio in terms of the HIMI Preferred Indices is:

Index MAPF Composition
Ratchet 0%
Fixed-Floater 0%
Floating Rate 0%
OpRet 0%
SplitShare 42%
InterestBearing 0%
PerpetualPremium 54%
PerpetualDiscount 2%
Cash 2%

The nice thing about the returns is that they have been virtually entirely dividends and capital gains, resulting in a generally lower tax rate than for interest for most taxable investors.

The fund is now available to investors across Canada, provided they meet the definition of “accredited investors”. This is a new development, requiring a trivial amount of extra disclosure on my part (basically, I have to give you the right to back out of the purchase agreement within a week of subscription AND tell you that you have that right) and I’m very pleased. I’ll be issuing a press release in early January announcing this availability. 

For more information and documents regarding the fund, see the HIMI website

One Response to “MAPF Returns: December 2006”

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