With regards to NexGen Canadian Preferred Share, we have made some re-allocations recently.
First, we have reduced the cash component. At the end of 2014, cash equivalents made up 14% of the fund, as we were somewhat defensive about share valuations. This year, we let cash go as high as 16%, which helped protect the fund as the preferred share market sold off. However, in the last couple of weeks we have reduced the cash component to roughly 3% as we believed that the selloff had run its course.
The second shift is that we have substantially increased the holdings of rate reset issues. Perpetual issues remain our largest sectoral holding, but rate reset issues now make up 37% of the portfolio, up from 19% at the start of the year.
You may also be interested to know that we have made temporary use of the BMO Laddered Rate Reset ETF (ZPR) to accomplish some of these changes. The holding will be sold as we purchase more individual rate reset issues.
Jeff, Dax, and Ian
J. Zechner Associates Inc.
All performance data is as of March 31, 2015. Performance for the NexGen Canadian Preferred Share Tax Managed Fund is for the Capital Gains Class Front End Load Regular Series and is as follows:
1 month: 0.1%; 3 months: 0.2%; 6 months: 2.3%; 1 year: 6.4%; and Since Inception: 6.6%. Performance for the NexGen Canadian Preferred Share Registered Fund is for the Front End Load Regular Series and is as follows: 1 month: 0.2%; 3 months: 0.3%; 6 months: 2.4%; 1 year: 6.6%; and Since Inception: 6.7%.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rate of return is the historical annual compounded total return including changes in share value and reinvestment of all dividends or distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.