PFD.PR.A : Normal Course Issuer Bid

Not content with suffering a 38% retraction of units, Charterhouse Preferred Share Index Corp. has announced:

that the Toronto Stock Exchange has accepted the Corporation’s Notice of Intention to make a normal course issuer bid. The Corporation will have the right to purchase under the bid up to a maximum of 137,182 Preferred Shares (representing 10% of the Corporation’s public float) commencing January 29, 2008. As at January 24, 2008, there were 1,380,276 Preferred Shares of the Corporation issued and outstanding and the Corporation’s public float was 1,371,826 Preferred Shares. In any 30 day period, no more than 27,605 Preferred Shares (representing 2% of the Corporation’s issued and outstanding Preferred Shares) may be purchased under this normal course issuer bid.

The purpose of the issuer bid is to enable the Corporation to acquire Preferred Shares at prices which are less than the net asset value per Preferred Share at the time of purchase. The Board of Directors believes that such purchases of Preferred Shares pursuant to the bid would be in the best interests of the Corporation. The Corporation will not purchase any Preferred Shares under the bid if the price of such shares would equal or exceed the net asset value per Preferred Share at such time.

I am probably a little dense, but I do not see any reporting of the NAVPS on the sponsor’s website.

They do, however, link to a rather tragic graph:

Their one-year performance (and it is not clear whether they measure performance by market price of PFD.PR.A or by its NAV) is -10.17% and the three-year annualized performance is -4.07%. I’ll stick to active management, thank you!

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