Q: The Morningstar report on NXF is really a downer citing weakness in management for lack of experience and the process of leaning toward larger and undervalued companies as well as overweighting in yield paying companies and those paying dividends and buying back shares. Hey, isn't that a GOOD thing? If I wanted caution I would be buying bonds. As I read this report the question is should I heed this comment or stay with NXF as it is? From 2020 it ranged from $6.80 in 2022 to $5.80 nowt to me it seems appropriate in my well diversified portfolio.
5i Research Answer:
Morningstar often needs something to write about, just for content. Recent performance has not been great, certainly, down 2.93% over one year. But we don't have any particular concerns on its strategy. Indicated yield is 7.45% and its holdings seem fine to us. The sector has not been great, certainly. We would be OK holding this for an income-focused sector investor.