Q: Your opinion please on whether or not this is worth holding for the dividend and a future recovery for the financials sector. Thank you.
5i Research Answer:
FSZ was taken out of our Income Model Portfolio on June 13 and we think it is time to move on. FSZ offers a good yield of ~16% but we feel a lot of this represents its inherent risks. We like the financials sector moving forward, but we do not like FSZ's deterioration in cash flows and high debt loads. We think EIF makes a good replacement.