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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Can you please explain this notice, the dates are confusing:
Annual Redemption Valuation Date: June 15, 2021

Annual Redemption Payment Date: On or before the 15th business day following the Annual Redemption Date.
BMO InvestorLine has been advised of an Annual Redemption Privilege for THE BITCOIN FUND CLASS A UNITS.
Terms:
Option 1: Cash - (USD) Annual Redemption Privilege
To receive a redemption price per Unit equal to 100% of the Net Asset Value per Unit determined on the Annual Redemption Date, less any costs and expenses associated with the redemption, including commissions incurred by the Fund to fund such redemptions.
Important Notes:
As per the Prospectus dated March 31, 2020:
Units may be redeemed at the option of Unitholders on the first business day following the 15th day of June in each year commencing on June 16, 2021, subject to the Fund's right to suspend redemptions in certain circumstances. Units so redeemed will be redeemed at a redemption price equal to the Net Asset Value per Unit on the Annual Redemption Date, less any costs and expenses associated with the redemption, including commissions incurred by the Fund to fund such redemptions. Units must be surrendered for redemption on or before the last business day of the month of May preceding the applicable Annual Redemption Date. Payment of the proceeds of redemption will be made in U.S. dollars on or before the 15th business day following the Annual Redemption Date
Read Answer Asked by Cheryl on January 27, 2021
Q: Hi, I’ve read through the information on the company’s website. Wondering what are the implications of a 3 year closed fund with two one year extensions. Does this mean the fund will be closed or potentially closed after 3-5 years and funds returned to unit holders? If so, at what value? Would a closed fund of this nature typically be wound up after a set period or is this more of an option of the company? Thanks.

“Three-year closed end fund, with two one year extension options
Targeted annual pre-tax distribution yield of 10.5% per annum, paid monthly”
Read Answer Asked by Gary on January 25, 2021
Q: Peter;
Closed Funds (CEFs).
Intrigued by your recent articles on DIY investor’s advantages and becoming a fund manager again, I re-read a couple of my books on hedge funds by Seabastian Mallaby, Edward O. Thorp, and Simon Lack’s “The Hedge Fund Mirage: The illusion of big money and why it’s too good to be true”.
In the latter 2012 book Simon Lack argues large hedge funds and most institutions ignore closed funds which leaves good opportunities for small hedge funds and sophisticated investors of which there are very few in his opinion. In Lack’s opinion the CEF space is dominated by individual retail investors who chase yield that is mis-stated (CEFs publish a distribution yield rather than the actual yield so are engaging in ROC) and foolishly buy IPOs of CEFs. Lack says numerous articles and books have been written on this subject and how to evaluate CEFs but my research did not produce very much at all. Do you have any views and suggestions on how an individual could or should approach this opportunity if it still exists?
WRS.
Read Answer Asked by William Ross on January 18, 2021
Q: I am still very curious about QBTC.U and how exactly they invest capital. I haven’t been able to find out much about it. Is BITCOIN the only asset the fund has? Do they trade bitcoin to gain value or is the value directly tied to the price of bitcoin? If they are holding bitcoin as a static asset, why would the value of the fund drop when they issue new shares if that new capital goes directly into additional bitcoin coins?
Read Answer Asked by Robert on December 30, 2020
Q: Thank you for your advice during the current Covid 19 world . I followed it and as a result have weathered it fairly well.... This brings me to what I thought was a good investment pre Covid 19 and what I think is good now..... FIH.U has taken close to a 50% drop and I can definitely see why.... India's headwinds in battling the virus are large and with their population and crowded demographics. It is going to be a tough battle ..... This brings me to the parts of FIH.U ..... For each of the companies invested in how does 5I view their short and mid term prospects ? Using the four largest positions would be adequate for analysis .....For example I know Bangalore airport will survive but it might be a while before there is sufficient air travel to be in the black . And the IIFL investment and it's value going forward confuse me... There was quite a bit of controversy on the company for a while ... ......Also what is their cash position to accumulate businesses in this environment ? And at the end of the last quarter book value was in excess of $14.00 ... Would that still be an appropriate assessment of book value in this Covid 19 environment ? And in relation to it's current gap between price to book does 5I view it as good value ? .... Thank you for the steady advice you have been giving us during this pandemic ......
Read Answer Asked by Garth on October 13, 2020
Q: One is an ETF while the other used covered calls to enhance dividends. Can you tell me what real difference there is between them aside from the 5% vs 10%+ div. I was thinking of buying XDIV but several of its holdings are the same as DFN which I own. Any point in also owning XDIV?
Thanks very much.
Read Answer Asked by Mark on September 08, 2020
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