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CEDIX - International & Event-Driven Credit Interval Fund
Investment Strategy and Philosophy The Fund invests in credit related instruments and/or investments considered by the Fund to have the potential to provide a high level of total return. Credit related instruments include: Bonds Debt securities Loans issued by various U.S. and non-U.S. public- or private-sector entities Derivatives Cash equivalents
Pros: Global mandate, CAGR 12.60%, StdDev 9.43%, interval fund, market co-relation 0.57, Alpha 9.11%, corporate parent is Royal Bank of Canada Cons: Relatively young, low AUM < $60M, niche strategy
Anybody invested in this one or have thoughts on it?
I don’t think I would touch this fund. Gross expense ratio is over 3%. The return numbers seem very suspect to me after reading over the funds holdings. Schwab has CEDIX up over 19% YTD? Really? Looking at the funds holding, while I can’t find a breakdown of the credit rating of the bonds it owns, looking at the interest rate of the bonds it is holding it seems a large portion are junk. They also hold about 10% in stocks. In these markets I find it hard to believe it’s assets are accurately priced unless of course if they made way more money on the warrants, currency trades and other derivatives I see the fund holds than I would think possible. I would avoid this fund like the plague.
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