BAM Split Corp., issuer of BNA.PR.B, BNA.PR.C, BNA.PR.D and BNA.PR.E, has released its Annual Report to September 30, 2012.
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 $319,000 for the year, or about 3bp p.a. on net assets.
The expenses are wel itemized, however, and are a delight for voyeurs. I found the Listing Fees of $96,000 and Rating Fees of $6,000 to be most interesting.
Average Net Assets: This must be calculated if we’re to find the second decimal point on the MER. On 2011-9-30, total assets were 1.541-billion; on 2012-9-30, 1.802-billion. I used the lower figure.
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 1.446%
Income Coverage: Dividends & Interest of $28.731-million less expenses (before amortization of issue costs) of $0.319-million is $28.412-million, to cover preferred (both junior and senior, which is not standard) dividends of $28.5-million is 100%.
The Brookfield guys never miss an accounting trick. They have on their books deferred issuance costs of $4.556-million, which reduces the value of the preferreds and hence increases the value of the Capital Units. Split Share Corporations normally expense their issuance costs immediately upon issue, but doing it this way means that the Capital Unit Value, and hence the Unit Value, is higher than it would be otherwise. This amounts to about $0.16 per unit. Naturally, keeping it on the books means you’ve got to charge it to annual expenses via amortization, but nobody’s going to look at that for analytical purposes. I didn’t! Strictly speaking, though, the $0.16 should be deducted from the NAVPU when calculating Asset Coverage.
This entry was posted on Sunday, February 10th, 2013 at 8:25 pm and is filed under Issue Comments. 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.
BNA 2012 Annual Report
BAM Split Corp., issuer of BNA.PR.B, BNA.PR.C, BNA.PR.D and BNA.PR.E, has released its Annual Report to September 30, 2012.
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 $319,000 for the year, or about 3bp p.a. on net assets.
The expenses are wel itemized, however, and are a delight for voyeurs. I found the Listing Fees of $96,000 and Rating Fees of $6,000 to be most interesting.
Average Net Assets: This must be calculated if we’re to find the second decimal point on the MER. On 2011-9-30, total assets were 1.541-billion; on 2012-9-30, 1.802-billion. I used the lower figure.
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 1.446%
Income Coverage: Dividends & Interest of $28.731-million less expenses (before amortization of issue costs) of $0.319-million is $28.412-million, to cover preferred (both junior and senior, which is not standard) dividends of $28.5-million is 100%.
The Brookfield guys never miss an accounting trick. They have on their books deferred issuance costs of $4.556-million, which reduces the value of the preferreds and hence increases the value of the Capital Units. Split Share Corporations normally expense their issuance costs immediately upon issue, but doing it this way means that the Capital Unit Value, and hence the Unit Value, is higher than it would be otherwise. This amounts to about $0.16 per unit. Naturally, keeping it on the books means you’ve got to charge it to annual expenses via amortization, but nobody’s going to look at that for analytical purposes. I didn’t! Strictly speaking, though, the $0.16 should be deducted from the NAVPU when calculating Asset Coverage.
This entry was posted on Sunday, February 10th, 2013 at 8:25 pm and is filed under Issue Comments. 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.