BNA Semi-Annual Report

BAM Split Corp., issuer of BNA.PR.B, BNA.PR.C, BNA.PR.D and BNA.PR.E, has released its Semi-Annual Report to March 31, 2011.

Figures of interest are:

MER: (excluding dividends on preferred shares, issue costs and Class A Preferred Share redemption premium) 0.0%. You don’t see that number very often! A more precise calculation from the Income Statement shows that the expenses totalled $190,000 for the half, or about 2bp p.a. on assets.

The expenses are wel itemized, however, and are a delight for voyeurs. I found the Listing Fees of $97,000 and Rating Fees of $7,000 to be most interesting.

Average Net Assets: This must be calculated if we’re to find the second decimal point on the MER. There was share issuance approximately half-way through the period, so say [1,547,354 (beginning of period) + 1,670,440 (end of period)] / 2 = 1,609-million, about

Underlying Portfolio Yield: Given the fund’s portfolio composition and investment policy, deviations from the raw yield on BAM.A will not be material. This is currently 1.875%

Income Coverage: Dividends & Interest of $14.117-million less expenses (before amortization of issue costs) of $0.190-million is $13.927-million, to cover preferred dividends of $11.298-million is 123%.

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