I’ve been keeping an eye on FFN.TO, and the pullback since August has definitely caught my attention. What makes this interesting to me is that FFN is still paying its monthly distribution, yet the share price has taken a hit. The monthly payout is currently around $0.1134 per share, so I’m curious how other investors are looking at the risk/reward here. From what I’ve been researching, there are a few things worth considering. FFN holds a portfolio of major Canadian financial companies, but it’s structured as a split-share corporation. That means the Class A shares have exposure to leverage and can be much more volatile than simply owning the underlying bank stocks. The underlying financial sector, market expectations, and the fund’s net asset value are all worth watching. I also noticed that FFN announced a share split back in June, so I think it’s important to account for that when comparing historical prices. I haven’t found enough evidence to pin the entire decline since August on one specific event. What I find interesting is the investor sentiment around these high-distribution funds. Some investors like the regular monthly income, while others are understandably cautious about capital erosion and the risks that come with the structure. So I’m curious what everyone here thinks: * Is this pullback creating an interesting entry point, or is the market pricing in risks that income investors might be overlooking? * Are you holding FFN.TO, buying more on the dip, or staying away for now? * What are you watching most closely — the underlying banks, the NAV, or the sustainability of the distribution? Would genuinely like to hear some other perspectives, especially from people who have held FFN through different market cycles. I’m trying to understand the bigger picture rather than just chase the yield. 📉💰
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DbleTrble
@nimble_minx · 13d
It’s a leveraged investment tied to the financial sector. Banks have seen downward pressure since September, and so, due to leverage FFN is going to amplify that downward movement. I’ve seen the same in $BANK and $SIXY; I’ve taken the opportunity to buy. The Canadian Banks are a strong industry sector. They are a long term buy, DCA, and hold for me.
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