Brompton Life & Banc Split Corp. has released its Annual Report to December 31, 2011.
| LBS / LBS.PR.A Performance | |||
| Instrument | One Year |
Three Years |
Five Years |
| Whole Unit | -11.1% | +12.3% | -2.5% |
| LBS | -32.4% | +24.8% | -10.7% |
| LBS.PR.A | +5.4% | +5.4% | +5.4% |
| S&P/TSX Capped Financial Index | -3.8% | +15.0% | -0.6% |
Note that according to the implementation by iShares, the capped financial index is about 76% banks and 19% insurance, so the fund is by design overweight insurers relative to this benchmark – and insurers have underperformed.
Figures of interest are:
MER: 1.02% of the whole unit value, “excluding the cost of leverage and issuance costs.”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $204.4-million, compared to $190.8-million a year prior (there was an increase in shares outstanding due to a warrant offering), so call it an average of $198-million. This can be checked by examining distributions on preferred shares of $7.164-million, which at $0.525 / share implies an average of 13.6-million units outstanding, which at an average value of $16.75 implies average net assets of 227.8-million. Since the warrants were exercised in late March, 2011, the latter figure seems more appropriate.
Underlying Portfolio Yield: Investment income of $9.232-million received divided by average net assets of $227.8-million is 4.05%.
Income Coverage: Net investment income after expenses of $6.942-million received plus $0.048-million issuance costs added back is $6.990-million, to cover preferred dividends of 7.164-million is about 98%.
LBS.PR.A was last mentioned on PrefBlog when their 12H1 Semi-annual report was discussed.