Brompton Lifeco Split Corp. has released its Annual Report to December 31, 2014.
| LCS / LCS.PR.A Performance | |||
| Instrument | One Year |
Three Years |
Five Years |
| Whole Unit | +5.1% | +26.6% | +8.2% |
| LCS.PR.A | +5.6% | +5.9% | +5.4% |
| LCS | +4.6% | N/A | +11.5% |
| S&P/TSX Financial Index | +12.6% | +18.7% | +11.8% |
| S&P/TSX Composite Index | +10.6% | +10.2% | +7.5% |
Note that the benchmarking isn’t ideal, since the Financial index will include banks, while the fund has a mandate only for insurers.
Figures of interest are:
MER: 1.27% of the whole unit value, excluding Preferred share distributions and issuance costs and agents’ fees in connection with the Fund’s treasury offerings of Preferred shares,.
Average Net Assets: We need this to calculate portfolio yield; and it’s tricky because there was massive issuance during the year. MER of 1.27% on Total Expenses excluding Preferred share distributions and issuance costs and agents’ fees of $773,319 implies $60.89-million net assets. Preferred Share distributions of 1,883,142 @ 0.525 / share implies 3.587-million shares out on average. Average Unit Value (beginning & end of year) = (16.36 + 17.00) / 2 = 16.68. Therefore 3.587-million @ 16.68 = 59.8-million average net assets. Good agreement between these two methods! Call it $60.4-million average fund assets.
Underlying Portfolio Yield: Dividends, interest and lending income received of 1.659-million divided by average net assets of 60.4-million is 2.77%
Income Coverage: Net Investment Income (before capital gains & losses and issuance costs and agents’ fees ) of $886,012 divided by Preferred Share Distributions of 1,883,142 is 47%.