DF.PR.A Semi-Annual Report

Dividend 15 Split Corp. II has released its Semi-Annual Report to May 31, 2014.

Figures of interest are:

MER: 1.30% of the whole unit value, “to reflect the normal operating expenses of the Company excluding any one time secondary offering expenses.”.

Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $115.6-million, compared to $153.2-million on May 31, so call it an average of $134.4-million. Preferred share dividends of $1,997,813 were paid over the half year at 0.525 p.a., implying average units outstanding of 7.61-million, at an average NAVPU of about $16.7, implies $127.1-million. That’s reasonably good agreement! Say the Average Net Assets are $130.8-million.

Underlying Portfolio Yield: Income received of $1,969,925 divided by average net assets of $130.8-million, multiplied by two because it’s semiannual is 3.01%.

Income Coverage: Net investment income of $1,104,941 divided by preferred share dividends of $1,997,813 is 55%.

Note that both the calculated portfolio yield and the income coverage are less than what was calculated according to the 2013 Annual Report; there may have been a delay in investing the proceeds of their issuance. We will have to wait and see what the 2014 Annual Report brings.

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