Brompton Life & Banc Split Corp. has released its Annual Report to December 31, 2018.
| LBS / LBS.PR.A Performance |
| Instrument |
One
Year |
Three
Years |
Five
Years |
Ten
Years |
| Whole Unit |
-13.1% |
+6.1% |
+5.2% |
+11.4 |
| LBS |
-32.1% |
+6.6% |
+5.0% |
+20.2 |
| LBS.PR.A |
+4.9% |
+4.9% |
+4.9% |
+5.1% |
| S&P/TSX Capped Financial Index |
-9.2% |
+8.5% |
+6.9% |
+12.2% |
Note that according to the implementation by iShares, the capped financial index is about 69% banks, 19.7% insurance and 10.4% diversified financials, so the fund is by design overweight insurers relative to this benchmark – and insurers have underperformed.
Figures of interest are:
MER: “The MER per unit, excluding Preferred share distributions (which were covered by the portfolio’s dividend income), was 0.91% for 2018”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $412.0-million, compared to $445.2-million a year prior (there was an increase in shares outstanding due to a warrant offering), so call it an average of $428.6-million. This can be checked by examining distributions on preferred shares of $11.728-million, which at $0.545 / share implies an average of 21.5-million units outstanding, which at an average value of $17.98 implies average net assets of 386.6-million. Since shares were issued in July and December, 2018, the latter figure seems more appropriate.
Underlying Portfolio Yield: Investment income of $17.354-million received divided by average net assets of $386.6-million is 4.5%.
Income Coverage: Net investment income after expenses of $10.845-million received plus $2.468-million issuance costs added back is $13.313-million, to cover preferred dividends of 11.728-million is about 114%.
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LBS.PR.A Annual Report 2018
Brompton Life & Banc Split Corp. has released its Annual Report to December 31, 2018.
Year
Years
Years
Years
Note that according to the implementation by iShares, the capped financial index is about 69% banks, 19.7% insurance and 10.4% diversified financials, so the fund is by design overweight insurers relative to this benchmark – and insurers have underperformed.
Figures of interest are:
MER: “The MER per unit, excluding Preferred share distributions (which were covered by the portfolio’s dividend income), was 0.91% for 2018”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $412.0-million, compared to $445.2-million a year prior (there was an increase in shares outstanding due to a warrant offering), so call it an average of $428.6-million. This can be checked by examining distributions on preferred shares of $11.728-million, which at $0.545 / share implies an average of 21.5-million units outstanding, which at an average value of $17.98 implies average net assets of 386.6-million. Since shares were issued in July and December, 2018, the latter figure seems more appropriate.
Underlying Portfolio Yield: Investment income of $17.354-million received divided by average net assets of $386.6-million is 4.5%.
Income Coverage: Net investment income after expenses of $10.845-million received plus $2.468-million issuance costs added back is $13.313-million, to cover preferred dividends of 11.728-million is about 114%.
This entry was posted on Sunday, April 14th, 2019 at 2:48 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.