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 add value over Q3. The Fund returned 0.81% over Q3 in a difficult yield environment as treasury yields remained suppressed despite a significant pick up in economic growth and the highest inflation numbers since 1991.

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.

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.

This combination of highly sought-after 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 DECEMBER 2021

Fund Performance: as at 31st December 2021:

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

**Benchmark returns since inception to 31/03/2021 reflect the iShares 7-10 year (IEF) . Benchmark returns from 31/03/2021 onwards reflect a 50/50 composite index . 50% iShares 7-10 year (IEF) / 50% NCREIF Property Index (NPI)