Brompton Split Banc Corp. has released its Semi-Annual Report to June 30, 2012, which in conjuntion with the Annual Report to December 31, 2011 allows preparation of the following table:
| SBC / SBC.PR.A Performance | ||||
| Instrument | Six Months to 2012-6-30 |
Periods to 2011-12-31 | ||
| One Year |
Three Years |
Five Years |
||
| Whole Unit | +2.8% | +1.5% | +21.3% | +4.9% |
| SBC | +2.9% | -2.20% | +49.0% | -2.0% |
| SBC.PR.A | +2.6% | +5.4% | +5.4% | +5.4% |
| S&P/TSX Capped Financial Index | +4.2% | -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: 1.14% 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 and 118.2-million on June 30, so call it an average of $119-million.
Underlying Portfolio Yield: Investment income of $2.622-million received divided by average net assets of $119-million is 2.20%, annualized is 4.40%
Income Coverage: Net investment income of $2.622-million less expenses of $0.696-million is $1.927-million, to cover preferred dividends of 1.574-million is about 122%.
SBC.PR.A was last mentioned on PrefBlog when it was confirmed at Pfd-3(high) by DBRS. SBC.PR.A is tracked by HIMIPref™ but relegated to the Scraps index on credit concerns.