After extensive due diligence, we found a perpetual, interest bearing security that was issued by Citigroup.
Our thesis was if we held a US dollar denominated asset for an extended period of time, we wanted to receive an acceptable rate of interest in return for taking on that perceived level of risk at that time.
The Citigroup “perpetuals” met all those criteria.
We purchased these securities with a multi-year view.
However, the US dollar appreciated so dramatically in such a short period of time, we exited this investment after only 10 months. Our average net to client return was 15% for this shorter holding period.
*The performance was calculated as at 30 June 2018. Past performance is not necessarily indicative of future performance.