# UTE.UN Canadian Utilities and Telecoms fund



## agent99 (Sep 11, 2013)

Anyone had a look at this fund? 

Yield at 7% seems high, so probably includes ROC. Checked - In 2015 it was 100% ROC! In 2014 about 50/50 CG/Div. No breakdown yet for 2016. In 2015 NAV dropped by about 20%. Gained about 3% in 2016, so with 7% not so bad. Even better in 2014. 

_"Distributions are calculated and paid monthly based on 7.0% per annum of the net asset value of the Fund"_ This may explain why distributions were 100% ROC in a seriously down year.

_ "Fund is expected to generate dividend income of approximately 5.92% per annum which,
after the deduction of expenses, will be distributed to Unitholders. The Fund’s portfolio would be required to generate an additional return of
approximately 2.99% per annum, including from dividend growth, realized capital appreciation and option premiums in order for the Fund to
maintain its targeted distributions and a stable NAV"_

Original unit value in 2010 was $12.00. Now $10.57. So has lost about 1.5% pa while paying 7% of NAV. Fees amount to 1.5%. 

Anyone see any merit in this fund? I was looking at it as a way of adding some diversification in TFSA where it is hard to hold many names. But not too impressed although portfolio looks OK.

http://www.strathbridge.com/overview.aspx?fund_id=1

Portfolio Jan 31st.

ALTAGAS LTD
AMERICAN WATER WORKS CO INC
BROOKFIELD INFRASTRUCTURE PA
COGECO COMMUNICATIONS INC
ENBRIDGE INCOME FUND HOLDING
GIBSON ENERGY INC
JUST ENERGY GROUP INC
PEMBINA PIPELINE CORP
SHAW COMMUNICATIONS INC-B
TELUS CORP
TRANSCANADA CORP

AMEREN CORPORATION
ATCO LTD -CLASS I
CAPITAL POWER CORP
ENBRIDGE INC
FORTIS INC
INTER PIPELINE LTD
PARKLAND FUEL CORP
ROGERS COMMUNICATIONS INC-B
SUPERIOR PLUS CORP
TRANSALTA RENEWABLES INC
VERESEN INC


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## Argonaut (Dec 7, 2010)

Might be the worst fund of all time. 1.5% in management fees, and sells covered calls on the illiquid TSX option exchange.

Buy a utility and telecom or two, and don't write covered calls. Now you're miles ahead of this fund.


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## agent99 (Sep 11, 2013)

Argonaut said:


> Might be the worst fund of all time. 1.5% in management fees, and sells covered calls on the illiquid TSX option exchange.
> 
> Buy a utility and telecom or two, and don't write covered calls. Now you're miles ahead of this fund.


I agree. I am not into buying funds or etfs, but thought it might be a way of diversifying the limited stocks currently held in our TFSAs. I wouldn't mind the management fee IF it performed better.


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