In late March PDI filed an At-The-Money offering with the intention of selling about 20% additional shares into the market at the then current price. The likely impetus for this action is the high premium-to-NAV enjoyed by the fund, which it has earned from high distribution rates and strong price performance.

While we think tactically the share price may come off, we think longer-term the fund will continue to perform due to its low duration and leveraged position on the US housing sector. See our full article on SA.

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