OSP.PR.A : Annual Report 2017

Brompton Oil Split Corp. has released its Annual Report to December 31, 2017.

OSP / OSP.PR.A Performance
Instrument One
Year
Since
Inception
Whole Unit -15.7% -6.4%
OSP.PR.A +5.1% +5.1%
OSP -37.8% -18.1%
S&P/TSX Capped Energy Index -10.6% -2.6%

Figures of interest are:

Average Net Assets: We need this to calculate portfolio yield and MER. NAV of 49.6-million in 2017, 52.2-million in 2016, average is 50.9-million.

MER: Expenses of 695,795 (not including amortization of the cost of issuance of preferred shares) on Average Net Assets of 50.9-million is 1.37% of the whole unit value.

Underlying Portfolio Yield: Dividends, interest and lending revenue(net of withholding) of 1.120-million divided by average net assets of 50.9-million is 2.20%

Income Coverage: Investment Income (as defined in “Underlying …”) of 1.120-million less expenses (as defined in “MER”) of 695,795 is 424,520 divided by Preferred Share Distributions of 1.606-million is 26%.

2 Responses to “OSP.PR.A : Annual Report 2017”

  1. gsp says:

    Ugly numbers above, got me looking at their website since I own the pref.

    Downside protection is 35% as of June 7th. No class A distribution in Feb and March with NAV below $15 cutoff, have since resumed.

    I notice they’re claiming a 1.31% MER.

  2. jiHymas says:

    I’ll hold off on condemning their portfolio management skills until they have a bit more of a track record, but it’s certainly not a good start.

    Their claim of a 1.31% MER is credible; but it doesn’t appear to be compliant with the securities rules, which – unless they have been changed recently – insist that MER should be applied only with respect to the assets attributable to the Capital Units and that preferred share distributions be included as an expense.

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