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  5. PFIA: Since the yield of this fund is way higher than normal fixed income products, and uses hedging to mitigate downside risk will this a strategy work in reducing real risk long term as the fund only h... [Picton Mahoney Fortified Income Alternative Fund]
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Q: Since the yield of this fund is way higher than normal fixed income products, and uses hedging to mitigate downside risk will this a strategy work in reducing real risk long term as the fund only has a one year history

Asked by Ron on June 08, 2021
5i Research Answer:

We think the managers are solid here, but there are no guarantees. Hedging can reduce risks, but there are currency and other issues at play as well. Performance (13% one year) has been good, and the past year has been volatile. We would be comfortable with this fund overall for fixed income exposure. Picton Mahoney has essentially built their reputation and business on risk-mitigation.