Q: I purchased this fund for secure monthly income hoping it would also hold up well .Could you give me an understanding of why it is dropping.in value? Currently down 3.5%.is this not to bad.Tks Larry
5i Research Answer:
PMIF is well ahead of the markets this year, up 1.14% with a 5.29% yield as well. The interest rate curve has been volatile as investors have begun to worry about interest rates going up, not down. This has impacted sentiment towards income funds. Investors, until today, have also been in a 'sell everything' mood, and many 'stable' securties have been sold to cover margin calls or buy other sectors. We would not be unduly concerned here. The fund is relatively conservative and has managed prior cycles well.