PrefBlog

Canadian Banc Corp. has released its Annual Report to November 30, 2011.

I suggest the reported outperformance probably has more to do with the poor performance of insurers over the past five years than with any manifestation of investment skill.

Figures of interest are:

MER: 1.57% of the whole unit value, excluding one time initial offering expenses.

Average Net Assets: We need this to calculate portfolio yield; unfortunately the number of units changesd, which makes it more approximate. The Total Assets of the fund at year end was $152.3-million, compared to $181.6-million a year prior, so call it an average of $167-million. Total Preferred Share Distribution in 2010 was $3.971-million, at $0.50/share implies an average of 7.942-million units, at an average NAV of ((20.17 + 22.09) / 2 = 21.13, so call it $167.8-million. Close enough! Call the Average Net Assets $167-million.

Underlying Portfolio Yield: Investment income of $6.606-million received divided by average net assets of $167-million is 3.96%.

Income Coverage: Net investment income of $6.606-million less expenses before issuance fees of $2.771-million is $3.835-million, to cover preferred dividends of 3.971-million is just under 97%.

BK.PR.A was last mentioned on PrefBlog when the Semi-annual report was examined.

This entry was posted on Saturday, March 10th, 2012 at 5:14 pm 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.