PrefBlog

DBRS has released their Split Share Funds Quarterly Report – Q4 2011:

Of the 34 split share unique issuers currently rated by DBRS, 19 experienced losses in net asset value (NAV) in Q4 2011, with the average NAV declining approximately 0.4% over the quarter. Funds with exposure to Canadian life insurance companies experienced the heaviest losses, while the biggest gainers were the more diversified funds with holdings in Canadian banks and energy companies. DBRS confirmed the ratings on six preferred shares issued by five split share companies and trusts and downgraded the rating on one preferred share in the fourth quarter. The rating confirmations were based on the performance and structural features of the issuers, which benefi t the preferred shares. Other key rating factors include the credit quality and diversifi cation of each portfolio, the amount of distributions paid to the holders of capital shares, and the expected maturity date of the preferred shares of each issuer.

It was a strong day on the Canadian preferred share market, with PerpetualDiscounts up 12bp, FixedResets gaining 16bp and DeemedRetractibles winning 27bp on the basis of good performance from insurance issues, which dominated the good part of the Performance Highlights table. Volume was quite good.

This entry was posted on Tuesday, January 17th, 2012 at 11:21 pm and is filed under Market Action. 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.