WFS.PR.A Annual Report 2010

World Financial Split Corp. has released its Annual Report to December 31, 2010.

WFS / WFS.PR.A Performance
Instrument One
Whole Unit -7.70% -10.89% -6.53%
WFS -49.49% -42.44% -29.39%
WFS.PR.A +5.35% +5.35% +5.35%
MSCI World/Finance Index -0.23% -13.51% -8.75%

Figures of interest are:

MER: 1.51% of the whole unit value, excluding one time initial offering expenses.

Average Net Assets: We need this to calculate portfolio yield; unfortunately the number of units changesd, which makes it more approximate. The Total Assets of the fund at year end was $76.6-million, compared to $107.3-million a year prior, so call it an average of $92.0-million. Total Preferred Share Distribution in 2010 was $3.888-million, at $0.525/share implies an average of 7.41-million units, at an average NAV of ((11.57 + 13.11) / 2 = 12.34, so call it $91.4-million. Close enough! Call the Average Net Assets $92-million.

Underlying Portfolio Yield: Investment income (sum of interest, dividends and withholding taxes) of $1.964-million received divided by average net assets of $92-million is 2.13%.

Income Coverage: Net investment income of $1.964-million less expenses before issuance fees of $1.743-million is $0.221-million, to cover preferred dividends of 3.888-million is just under 6%.

WFS.PR.A was last mentioned on PrefBlog when a term extension proposal was announced.

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