Holdun Income Fund - Executive Summary Q1 2021 - Holdun

Holdun Income Fund

Executive Summary Q1 2021

Fund Update

The Holdun Income Fund (“HIF”) continues to rebound from the March 2020 NAV reduction. The Fund returned 4.04% over Q1 to bring the current NAV to 99.57 as at 31 March 2021. In the last twelve months, the HIF has steadily increased in value by an average of 0.93% a month due to the cash flow generating nature of the GNMA securities.

Long-term Government bond yield movements dominated financial news this quarter. Following a year of suppressed bond yields, The 10-year US Treasury yield rose from 0.91% to as high as 1.74%, its highest level since early 2020

Going forward, as inflation pressure and economic growth picks up, the base case scenario will see bond yields tick slowly higher. As a result, the increase in the HIF NAV will be accelerated as the securities structured to benefit from rising long-term interest rates increase in valuation.

10Y Treasury Rebound

Over the quarter, the HIF invested in a high-quality real estate portfolio consisting of four trophy properties located in Boca Raton, Florida. The Boca Trophy Portfolio will contribute significant cash flow to the fund and will have an anticipated 14-16%, 5- year annualized total return.

The new Cayman Islands Feeder Fund Structure for the HIF was officially implemented on 1st April 2021. The fund will report quarterly NAV’s going forward, with the first NAV reflecting Q2 2021 performance.

Looking ahead, the real estate portion of the fund will offer attractive current positive cash flow, coupled with an “add-value” opportunity through an anticipated increase in occupancy, increase in rents and additional revenue potential from its development. This combination of highly soughtafter real estate and a steeper yield curve environment will function to accelerate the growth of the Holdun Income Fund going forward.

Since Inception Return Analysis: as at 31 March 2021

Portfolio

Benchmark
Compound Return

-0.03%

1.88%

Compound  Growth of $100,000

$99,873

$109,061

Volatility

15.82%

5.96%

Correlation of the Fund

96.4%

5.96%

Percentage Month Positive

96.4%

53.6%

Fund Performance: as at 31 March 2021:

*Since Inception returns as of the 31st of July 2016.

  Trailing Returns (Net)

1-month

3-month 1-yr 3-yr Since Inception *
   Portfolio

3.42%

4.04%

11.18%

-3.09%

(0.03%)

   Barclays 7-10 Year Treasury

(2.39%) (5.73%) 5.83% 4.98%

1.88%

HOLDUN