Brompton Lifeco Split Corp. has released its Annual Report to December 31, 2018.
| LCS / LCS.PR.A Performance |
| Instrument |
One
Year |
Three
Years |
Five
Years |
Ten
Years |
Since
Inception |
| Whole Unit |
-18.1% |
+1.1% |
+2.2% |
+6.7% |
+1.5% |
| LCS.PR.A |
+5.9% |
+5.9% |
+5.9% |
+5.6% |
+5.6% |
| LCS |
-55.2% |
-12.1% |
-7.2% |
+6.2% |
-6.2% |
| S&P/TSX Capped Financial Index |
-9.2% |
+8.5% |
+6.9% |
+12.2% |
+5.7% |
| S&P/TSX Composite Index |
-8.9% |
+6.4% |
+4.1% |
+7.9% |
+3.4% |
Note that the benchmarking isn’t ideal, since the Financial index will include banks, while the fund has a mandate only for insurers.
Figures of interest are:
MER: The MER per unit of the Fund, excluding Preferred share distributions (which were largely covered by the Fund’s dividend income), was 0.98% in 2018, down from 1.05% in 2017 as a result of better fixed-cost absorption.
Average Net Assets: We need this to calculate portfolio yield; and it’s tricky because “The Fund completed a treasury offering of Class A shares and Preferred shares for aggregate gross proceeds of approximately $38.6 million on February 6, 2018.”. Preferred Share distributions of 4,055,809 @ 0.575 / share implies 7.054-million shares out on average. Average Unit Value (beginning & end of year) = (16.82 + 12.71) / 2 = 14.76. Therefore 7.054-million @ 14.76 = 104.1-million average net assets.
Underlying Portfolio Yield: Dividends, interest and lending income received of 4.249-million divided by average net assets of 104.1-million is 4.08%
Income Coverage: Gross Investment Income (before capital gains & losses) of $4.250-million less expenses of 1.818-million is net investment income of $2.432-million divided by Preferred Share Distributions of 4.056-million is 60%.
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LCS.PR.A : Annual Report, 2018
Brompton Lifeco Split Corp. has released its Annual Report to December 31, 2018.
Year
Years
Years
Years
Inception
Note that the benchmarking isn’t ideal, since the Financial index will include banks, while the fund has a mandate only for insurers.
Figures of interest are:
MER: The MER per unit of the Fund, excluding Preferred share distributions (which were largely covered by the Fund’s dividend income), was 0.98% in 2018, down from 1.05% in 2017 as a result of better fixed-cost absorption.
Average Net Assets: We need this to calculate portfolio yield; and it’s tricky because “The Fund completed a treasury offering of Class A shares and Preferred shares for aggregate gross proceeds of approximately $38.6 million on February 6, 2018.”. Preferred Share distributions of 4,055,809 @ 0.575 / share implies 7.054-million shares out on average. Average Unit Value (beginning & end of year) = (16.82 + 12.71) / 2 = 14.76. Therefore 7.054-million @ 14.76 = 104.1-million average net assets.
Underlying Portfolio Yield: Dividends, interest and lending income received of 4.249-million divided by average net assets of 104.1-million is 4.08%
Income Coverage: Gross Investment Income (before capital gains & losses) of $4.250-million less expenses of 1.818-million is net investment income of $2.432-million divided by Preferred Share Distributions of 4.056-million is 60%.
This entry was posted on Sunday, June 16th, 2019 at 5:18 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.