Morgan Meighen & Associates has released the 2013 Annual Report for Canadian General Investments, Limited.
The closed-end fund has two series of preferred shares outstanding, CGI.PR.C and CGI.PR.D, which I consider to be Split Shares as they are backed by an investment portfolio rather than by an operating company.
MER: The Management Expense Ratio, excluding leverage costs (dividends on preference shares and interest and financing charges) is 1.66%
Average Net Assets: We need this to calculate portfolio yield and MER. The capital transactions (refunding of preferred shares) were a wash, so we’ll just take the average of the beginning and end of year assets (including preferred shares): [(454,782+150,000) + (533,397 + 148,210)]/2 = $643.2-million
Underlying Portfolio Yield: Total Income of $14.8-million divided by average net assets of $643.2-million is 2.3%.
Income Coverage: Net income of $6.723-million (after expenses, before preferred dividends) preferred dividends of $6.019-million is 112%.
Asset Coverage: Because CGI doesn’t have a “unit value”, in the sense that one unit is one capital unit and one preferred share, it is convenient to work this out every six months and make any necessary adjustments from this figure. At December 31, 2013, the fund has net assets (for the capital units) of 533,397-million and preferred shares of 148,210-million, so asset coverage is almost exactly 4.6:1
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CGI Releases 2013 Annual Report
Morgan Meighen & Associates has released the 2013 Annual Report for Canadian General Investments, Limited.
The closed-end fund has two series of preferred shares outstanding, CGI.PR.C and CGI.PR.D, which I consider to be Split Shares as they are backed by an investment portfolio rather than by an operating company.
MER: The Management Expense Ratio, excluding leverage costs (dividends on preference shares and interest and financing charges) is 1.66%
Average Net Assets: We need this to calculate portfolio yield and MER. The capital transactions (refunding of preferred shares) were a wash, so we’ll just take the average of the beginning and end of year assets (including preferred shares): [(454,782+150,000) + (533,397 + 148,210)]/2 = $643.2-million
Underlying Portfolio Yield: Total Income of $14.8-million divided by average net assets of $643.2-million is 2.3%.
Income Coverage: Net income of $6.723-million (after expenses, before preferred dividends) preferred dividends of $6.019-million is 112%.
Asset Coverage: Because CGI doesn’t have a “unit value”, in the sense that one unit is one capital unit and one preferred share, it is convenient to work this out every six months and make any necessary adjustments from this figure. At December 31, 2013, the fund has net assets (for the capital units) of 533,397-million and preferred shares of 148,210-million, so asset coverage is almost exactly 4.6:1
This entry was posted on Sunday, March 16th, 2014 at 3:40 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.