The Metrics Income Opportunities Trust (MOT) is the riskier version of the Metrics Master Income Trust (MXT) we recently took profit on in the Income Portfolio. Both funds have performed well and have been true to their mandate, delivering consistent monthly income. We have not considered MOT for many of the same reasons as why we sold MXT. Investors have low visibility on the positions held within the trust and performance is yet to truly be tested in periods of economic distress. MOT also looks to earn capital gains out of debt, banking on improving credit quality or credit spreads, while having a high-performance fee rate if it beats the hurdle which further adds to the risk the trust takes on.
Metrics are great managers in the space with a strong track record, but we prefer to hold more transparent positions at Market Matters.