SBC.PR.A Annual Report 2011

Brompton Split Banc Corp. has released its Annual Report to December 31, 2011.

SBC / SBC.PR.A Performance
Instrument One
Whole Unit +1.5% +21.3% +4.9%
SBC -2.20% +49.0% -2.0%
SBC.PR.A +5.4% +5.4% +5.4%
S&P/TSX Capped Financial Index -3.8% +15.0% -0.6%

I suggest the reported outperformance probably has more to do with the poor performance of insurers over the past five years than with any manifestation of investment skill; on the other hand, the fund has handsomely outperformed BK / BK.PR.A for the past five years, even allowing for the one month difference in period end.

Figures of interest are:

MER: 0.98% of the whole unit value, “excluding the cost of leverage and the issuance costs.”

Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $119.9-million, compared to $128.1-million a year prior, so call it an average of $124-million.

Underlying Portfolio Yield: Investment income of $5.188-million received divided by average net assets of $124-million is 4.18%.

Income Coverage: Net investment income of $5.188-million less expenses of $1.253-million is $3.934-million, to cover preferred dividends of 3.149-million is about 125%.

SBC.PR.A was last mentioned on PrefBlog when a term extension of up to five years was approved last March.

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