Summary

• Approximately one-third of PFF's portfolio is invested in Mandatory Convertible Preferred Shares. These have contributed disproportionately to PFF's overall returns, which lag the overall category.
• PFF's exposure to Mandatory Convertible Preferred Shares has made it a riskier investment (as measured by its Standard Deviation) than both its benchmark index, and the overall Preferred Share category.
• Returns have been worse that the category as a whole, investors are not compensated for assuming this additional risk, and PFF has an extremely low Sharpe Ratio.

Back in the day, there was a law in Canada that made it illegal for Canadian pension funds and private individuals to buy non-Canadian securities for their retirement accounts. After all, a US Treasury or a Gilt

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