Dividend Growth Split Corp. has released its Semi-Annual Report to June 30, 2011.
Figures of interest are:
MER: The MER per unit of the Fund, excluding the cost of leverage, was 1.05% as at June 30, 2011.
Average Net Assets: This calculation is complicated by the merger with BE that took effect in May. We need figure to calculate portfolio yield. [79.0-million (NAV, beginning of period) + 119.0-million (NAV, end of period)] / 2 = about 99-million. Another method is to take the distributions on the preferred shares ($1,255,790) and divided by the distributions per share (0.2625) to get the average number of shares (4.78-million) and multiply by the average NAV ((18.65+18.17) / 2 = 18.41) to get the average assets ($88-million). The agreement isn’t very good! A third method is to take the dollar value of the fund expenses (525,506), annualize it (1.05-million) and divide by the quoted MER (1.05%) to get the Average Net Assets ($100-million). Let’s call it $100-million and cross our fingers.
Underlying Portfolio Yield: Total income of 1,866,783, times two (semi-annual) divided by average net assets of 100-million is 3.73%
Income Coverage: Net Investment Income of 1,339,277 divided by Preferred Share Distributions of 1,255,790 is 107%. This is almost certainly too low: the extra preferred shares were issued on May 18 and will have received the quarterly dividend; but given that coverage is in excess of 100% even so, the calculation of a number self-consistent with the other figures reported here is left as an exercise for the student.
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DGS.PR.A: 11H1 Semi-Annual Report
Dividend Growth Split Corp. has released its Semi-Annual Report to June 30, 2011.
Figures of interest are:
MER: The MER per unit of the Fund, excluding the cost of leverage, was 1.05% as at June 30, 2011.
Average Net Assets: This calculation is complicated by the merger with BE that took effect in May. We need figure to calculate portfolio yield. [79.0-million (NAV, beginning of period) + 119.0-million (NAV, end of period)] / 2 = about 99-million. Another method is to take the distributions on the preferred shares ($1,255,790) and divided by the distributions per share (0.2625) to get the average number of shares (4.78-million) and multiply by the average NAV ((18.65+18.17) / 2 = 18.41) to get the average assets ($88-million). The agreement isn’t very good! A third method is to take the dollar value of the fund expenses (525,506), annualize it (1.05-million) and divide by the quoted MER (1.05%) to get the Average Net Assets ($100-million). Let’s call it $100-million and cross our fingers.
Underlying Portfolio Yield: Total income of 1,866,783, times two (semi-annual) divided by average net assets of 100-million is 3.73%
Income Coverage: Net Investment Income of 1,339,277 divided by Preferred Share Distributions of 1,255,790 is 107%. This is almost certainly too low: the extra preferred shares were issued on May 18 and will have received the quarterly dividend; but given that coverage is in excess of 100% even so, the calculation of a number self-consistent with the other figures reported here is left as an exercise for the student.
This entry was posted on Sunday, October 16th, 2011 at 10:54 am and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.