FTN.PR.A : Semi-Annual Report, 2019

Financial 15 Split Corp has released its Semi-Annual Report to May 31, 2019.

Figures of interest are:

MER: 1.01% of the whole unit value, adjusted “to reflect the normal operating expenses of the Company excluding any one time offering expenses. ”

Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $643.9-million, compared to $647.0-million on May 31, so call it an average of $645.5-million. Preferred share dividends of $11,380,883 were paid over the half year at 0.55 p.a. (a temporary boost from the required 0.525), implying average units outstanding 41.39-million, at an average NAVPU of (15.90 + 18.32 14.99)/2 = 17.11 15.44, implies net assets of $708.2-million $639.1-million. Say the Average Net Assets are the average of the two estimates, $676.8-million $642.3-million.

Underlying Portfolio Yield: Income received of $11,120,161 divided by average net assets of $676.8-million $642.3-million, multiplied by two because it’s semiannual is 3.29% 3.46%.

Income Coverage: Net investment income of $7,331,482 (before capital gains) divided by preferred share dividends of $11,380,883 is 64%.

The income coverage calculated is equal to the 0.64 times calculated by DBRS in April 2019.

Update, 2019-8-12: Figures struck out and replaced have been changed as the wrong end-value for 2018 was used initially. See comments.

2 Responses to “FTN.PR.A : Semi-Annual Report, 2019”

  1. RAV4guy says:

    Reading page 6 of the report on FTN the NAVPU for the units at the end of the two periods are 14.99 and 15.90.

  2. jiHymas says:

    Quite right! I’ve fixed it.

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