Financial 15 Split Corp has released its Semi-Annual Report to May 31, 2018.
Figures of interest are:
MER: 1.17% of the whole unit value, “presented 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 $610.1-million, compared to $700.9-million on May 31, so call it an average of $655.5-million. Preferred share dividends of $9,579,729 were paid over the half year at 0.55 p.a. (a temporary boost from the required 0.525), implying average units outstanding 34.836-million, at an average NAVPU of (17.31 + 18.32)/2 = 17.815, implies net assets of $620.6-million. Say the Average Net Assets are the average of the two estimates, $660.8-million.
Underlying Portfolio Yield: Income received of $8,304,005 divided by average net assets of $660.8-million, multiplied by two because it’s semiannual is 2.51%.
Income Coverage: Net investment income of $4,279,848 (before capital gains) divided by preferred share dividends of $9,579,729 is a very low 45%.
The income coverage calculated is fairly close to the 0.4 times calculated by DBRS in December 2017.
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FTN.PR.A : Semi-Annual Report, 2018
Financial 15 Split Corp has released its Semi-Annual Report to May 31, 2018.
Figures of interest are:
MER: 1.17% of the whole unit value, “presented 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 $610.1-million, compared to $700.9-million on May 31, so call it an average of $655.5-million. Preferred share dividends of $9,579,729 were paid over the half year at 0.55 p.a. (a temporary boost from the required 0.525), implying average units outstanding 34.836-million, at an average NAVPU of (17.31 + 18.32)/2 = 17.815, implies net assets of $620.6-million. Say the Average Net Assets are the average of the two estimates, $660.8-million.
Underlying Portfolio Yield: Income received of $8,304,005 divided by average net assets of $660.8-million, multiplied by two because it’s semiannual is 2.51%.
Income Coverage: Net investment income of $4,279,848 (before capital gains) divided by preferred share dividends of $9,579,729 is a very low 45%.
The income coverage calculated is fairly close to the 0.4 times calculated by DBRS in December 2017.
This entry was posted on Sunday, August 12th, 2018 at 12:04 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.