Another Opinion.... Question Asked: What are your thoughts on this income fund, I’ve held it for over a year and see its the price has been climbing this year, up from a price in the low $10.00 range last year.
It provides a very healthy yield (+10%) and was a Gordon Pape suggestion over a year ago at this price level. Is it a good steady fund to own for income in one’s RRSP?
The 5I Research Answer:
We view it as OK; it has a 5-year return of 13% and a good record of distributions, though most distributions are return of capital. The units, at $11, were $16 in 2011 so the high yield has been somewhat offset with capital loss. Its holdings look fine, but are nothing unusal (microsoft, berkshire, banks). Fees are fairly high. We think there are better funds.