Holdun Income Fund - Executive Summary Q2 2021 - Holdun

Holdun Income Fund

Executive Summary Q2 2021

Overview

The Holdun Income Fund offers a blended portfolio of AAA-rated bonds and high-quality real estate resulting in significant cash flow generation, diversification and above-average returns for investors seeking downside protection.

Fund Update

The Holdun Income Fund (“HIF”) continues to rebound from the March 2020 NAV reduction. The Fund returned 4.04% over Q2 to bring the current NAV to 99.57 as at 30 June 2021.

Despite and significant pick up in economic growth and the highest inflation numbers since 2009, The yield on the 10-year Treasury fell from 1.75% to 1.18% since mid-March as market participants deemed current inflation metrics to be transitory in nature.

Going forward, The tapering debate will continue to gather momentum and place upward pressure on bond yields as central bank stimulus policies become increasingly more difficult to justify amidst significant economic growth and inflation.

The GNMA securities continue to generate consistent cash flows and as bond yields tick slowly higher, the securities structured to benefit from rising long-term interest rates will add additional upside.

The Boca Trophy Portfolio continued to experience occupancy increases and Net Operating Income increases over the quarter.

2021 Net operating Income (NOI) projections for the portfolio are in excess of $11,000,000, up from $10,100,000 when initially purchased

The occupancy rate has increased from 86% to 91% since purchase and we are currently in negotiation with potential tenants to lease another +25,000 sq of space currently operated by the landlord as executive suites.

The Boca Trophy Portfolio will contribute significant cash flow to the fund and is anticipated to generate a 14-16%, 5- year annualized total return.

Since Inception Return Analysis: as at 30 June 2021

Portfolio

Benchmark
Compound Return

0.75%

2.40%
Compound  Growth of $100,000

$103,758

$112,349

Volatility

15.96%

6.02%

Percentage Month Positive

96.6%

52.5%

Fund Performance: as at 30 June 2021:

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

Trailing Returns (Net)

3-month

6-month 1-yr 3-yr

Since Inception *

Portfolio

3.89%

8.09% 12.55% (2.26%)

0.75%

Barclays 7-10 Year Treasury

3.01% (2.89%) (3.85%) 6.07%

2.40%

HOLDUN