Brompton Lifeco Split Corp has released its Semi-Annual Report to June 30, 2014.
Figures of interest are:
MER: “The MER per unit of the Fund, excluding Preferred share distributions and issuance costs and agents’ fees in connection with the Fund’s treasury offering of Preferred shares, was 1.79% for the first six months of 2014 up from 1.34% in 2013.”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $28.8-million, compared to $43.8-million on June 30, so call it an average of $36.3-million. Preferred share dividends of $553,870 were paid over the half year at 0.575 p.a., implying average units outstanding of 963,252, at an average NAVPU of about $16.72, implies $16.1-million. This is a huge difference, caused by a large treasury offering completed May 1, 2014; none of the preferred shares in this offering accrued a dividend during the six month period. So take the beginning figure of $28.8- million twice and the period-end figure of $43.8-million once, to arrive at an estimated average of $33.8-million.
Underlying Portfolio Yield: Dividend, interest and securities lending income received of $568,825 divided by average net assets of $33.8-million, multiplied by two because it’s semiannual, is 3.37%.
Income Coverage: Investment income of $568,825, less recurring expenses of $250,570 (disregarding legal fees, transaction costs and agents’ fees) is 318,255, divided by preferred share dividends of $553,870 is 57%.
There are a lot of approximations here and, regrettably, the 2014 Annual Report won’t be of much use in nailing them down, due to all the treasury offerings.
This entry was posted on Sunday, November 16th, 2014 at 10:53 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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LCS.PR.A Semi-Annual Report 2014
Brompton Lifeco Split Corp has released its Semi-Annual Report to June 30, 2014.
Figures of interest are:
MER: “The MER per unit of the Fund, excluding Preferred share distributions and issuance costs and agents’ fees in connection with the Fund’s treasury offering of Preferred shares, was 1.79% for the first six months of 2014 up from 1.34% in 2013.”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $28.8-million, compared to $43.8-million on June 30, so call it an average of $36.3-million. Preferred share dividends of $553,870 were paid over the half year at 0.575 p.a., implying average units outstanding of 963,252, at an average NAVPU of about $16.72, implies $16.1-million. This is a huge difference, caused by a large treasury offering completed May 1, 2014; none of the preferred shares in this offering accrued a dividend during the six month period. So take the beginning figure of $28.8- million twice and the period-end figure of $43.8-million once, to arrive at an estimated average of $33.8-million.
Underlying Portfolio Yield: Dividend, interest and securities lending income received of $568,825 divided by average net assets of $33.8-million, multiplied by two because it’s semiannual, is 3.37%.
Income Coverage: Investment income of $568,825, less recurring expenses of $250,570 (disregarding legal fees, transaction costs and agents’ fees) is 318,255, divided by preferred share dividends of $553,870 is 57%.
There are a lot of approximations here and, regrettably, the 2014 Annual Report won’t be of much use in nailing them down, due to all the treasury offerings.
This entry was posted on Sunday, November 16th, 2014 at 10:53 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.