Q: why is this considered hi risk? Thx James
5i Research Answer:
It is higher risk because of the high volatility of the oil and gas sector. As we have seen over the past three years, the sector moves sharply. Covered call premiums offset only a little bit of this risk. If the sector was to decline, this fund is still going to go down, perhaps a lot. Investors get enticed by the high yield offered, but there are sector risks here that investors need to be cognizant of. Overall, we would consider it a decent fund, but within one of the most volatile sub-market sectors.