Q: Hello
There seems to be interest in this ETF here and on BNN market call.
The price chart now being at pandemic low price catches my attention
I tried to access manager commentary but it was locked. Are you able to comment on what has driven such a poor price performance and whether the financial environment we are entering in the USA is favourable for this ETF?
We’d all like 9% yield but a waste of time if the price drops more.
Any thoughts?
Thanks
Dave
There seems to be interest in this ETF here and on BNN market call.
The price chart now being at pandemic low price catches my attention
I tried to access manager commentary but it was locked. Are you able to comment on what has driven such a poor price performance and whether the financial environment we are entering in the USA is favourable for this ETF?
We’d all like 9% yield but a waste of time if the price drops more.
Any thoughts?
Thanks
Dave
5i Research Answer:
One year return is 7.89% so it has recovered somewhat. Indicated yield is now 11.02%. The fund has been hit a couple of ways. The yield curve, even with declining Central Bank rates, has acted differently. Bond prices in many durations have declined, even when they are 'supposed' to rise when rates drop. The fund invests in corporate loans, and there has been some economic concerns, which have also impacted prices. 93% of its holdings are corporate securities. It is fairly non-correlated to other bond funds, or at least should be. We would consider it an 'alternative' ETF holding. Not really 'bad', but with 5-year return of 3.60% hard to strongly endorse.