Canadian Life Companies Split Corp. has released its Annual Report to November 30, 2013.
| LFE / LFE.PR.A & LFE.PR.B Performance |
| Instrument |
One
Year |
Three
Years |
Five
Years |
| Whole Unit |
+22.71% |
+5.22% |
+2.67% |
| LFE.PR.A & LFE.PR.B |
+6.43% |
+5.88% |
+5.68% |
| LFE |
+89.62% |
-5.02% |
-8.35% |
| S&P TSX Financial Index |
+25.17% |
+12.64% |
+15.34% |
I won’t ding them for underperforming their chosen index over the past five years because banks have strongly outperformed insurers through the period – but I will ding them for not using an index comprised of insurers only!
Figures of interest are:
MER: 2.31% of the whole unit value, excluding one time initial offering expenses. However, “Warrant Subscription Fees” … according to the Management Information Circular (SEDAR, 2012-3-21):
The Company will pay a subscription fee of $0.25 per Unit in respect of each subscription procured by a CDS Participant on behalf of their clients.
which is nice work if you can get it.
Average Net Assets: We need this to calculate portfolio yield; unfortunately the number of units changed dramatically over the year, which makes it more approximate. The Total Assets of the fund at year end was $196.0-million, compared to $112.2-million a year prior, so call it an average of $154.1-million. Total Preferred Share Distribution was $6.799-million, at $0.625/share implies an average of 10.88-million units, at an average NAV of ((14.34 + 12.48) / 2 = 13.41, so call it $145.9-million. Which is actually reasonably close, so let’s call the Average Net Assets $150-million.
Underlying Portfolio Yield: Dividends received of $4.51-million divided by average net assets of $150-million is 3.01%.
Income Coverage: Dividends of 4.51-million less expenses before Warrant Subscription Fees (because they aren’t recurring) of 1.61-million is 2.90-million, to cover preferred dividends of 6.80-million is 43%
This entry was posted on Sunday, March 16th, 2014 at 8:53 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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LFE.PR.B Releases 2013 Annual Report
Canadian Life Companies Split Corp. has released its Annual Report to November 30, 2013.
Year
Years
Years
I won’t ding them for underperforming their chosen index over the past five years because banks have strongly outperformed insurers through the period – but I will ding them for not using an index comprised of insurers only!
Figures of interest are:
MER: 2.31% of the whole unit value, excluding one time initial offering expenses. However, “Warrant Subscription Fees” … according to the Management Information Circular (SEDAR, 2012-3-21):
which is nice work if you can get it.
Average Net Assets: We need this to calculate portfolio yield; unfortunately the number of units changed dramatically over the year, which makes it more approximate. The Total Assets of the fund at year end was $196.0-million, compared to $112.2-million a year prior, so call it an average of $154.1-million. Total Preferred Share Distribution was $6.799-million, at $0.625/share implies an average of 10.88-million units, at an average NAV of ((14.34 + 12.48) / 2 = 13.41, so call it $145.9-million. Which is actually reasonably close, so let’s call the Average Net Assets $150-million.
Underlying Portfolio Yield: Dividends received of $4.51-million divided by average net assets of $150-million is 3.01%.
Income Coverage: Dividends of 4.51-million less expenses before Warrant Subscription Fees (because they aren’t recurring) of 1.61-million is 2.90-million, to cover preferred dividends of 6.80-million is 43%
This entry was posted on Sunday, March 16th, 2014 at 8:53 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.