Global equities continued selling off into October, as US long term treasury rates rose to levels not seen since pre-2008. Implied volatility on index options rose moderately, however the relatively orderly sell-off mitigated further increases in volatility expectations. As inflation trends improved and federal reserve officials signaled the potential end to rates hikes, equities & fixed income instruments rallied sharply into year end.
In the Ninepoint Target Income Fund, a quarter of the options portfolio rolled in December into new 1 year put options. Much of the options portfolio at quarter end, sat with strike prices greater than -15% out-the-money. This continues to provide downside protection before options premiums and investment principal are at risk at expiry.
Until Next Time,
Colin Watson
Portfolio Manager
Ninepoint Partners
1M | YTD | 3M | 6M | 1YR | Annualized Inception | |
Fund | 0.5% | 6.9% | 1.9% | 2.8% | 6.9% | 6.3% |
1M | YTD | 3M | 6M | 1YR | Annualized Inception | |
Fund | 0.5% | 7.2% | 2.9% | 3.0% | 7.2% | 7.0% |
1All returns and fund details are a) based on Series F and Series SF shares; b) net of fees; c) annualized if period is greater than one year; d) as at December 31, 2023.
Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for Series F and Series SF shares of the Fund for the period ended December 31, 2023 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
The Ninepoint Target Income Fund is generally exposed to the following risks. See the simplified prospectus of the Fund for a description of these risks: Absence of an active market for ETF Series risk; Concentration risk; Currency risk; Derivatives risk; Foreign investment risk; Halted trading of ETF Series risk; Inflation risk; Interest rate risk; Liquidity risk; Market risk; Securities lending, repurchase and reverse repurchase transactions risk; Series risk; Short selling risk; Substantial unitholder risk; Tax risk and Trading price of ETF Series risk.
Ninepoint Partners LP: Toll Free: 1.866.299.9906. DEALER SERVICES: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540