Brompton Group has announced it:
is proposing a meeting of YEARS Financial Trust (“YTU”) to consider the merger of YTU into Dividend Growth Split Corp. (“DGS”). The merger is being proposed to address the economic inefficiencies of operating a small investment fund like YTU and to provide investors with a high quality portfolio at a low cost. Due to its smaller size, YTU’s annual general and administration costs currently represent 0.66% of its net asset value and YTU is becoming too small to operate on its own.
DGS invests on an equally weighted basis in a portfolio of 20 large capitalization Canadian equities that have among the highest dividend growth rates on the TSX and utilizes a split share structure. Over 60% of DGS’s portfolio is invested in Canadian financial equities and it includes nine of the eleven equities currently held in YTU. In addition, Highstreet Asset Management, which acts as portfolio manager of YTU, invests DGS’s assets, rebalances its portfolio and selectively writes covered options to generate additional income for DGS. As such, the Manager considers DGS to be a similar investment to YTU.
DGS had $30-million in assets as of January 31, 2008, while YTU had $23-million as of August 31.
DGS.PR.A is not tracked by HIMIPref™. The issue was announced last November.
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DGS.PR.A Issue Size to Increase with Proposed YTU.UN Merger
Brompton Group has announced it:
DGS had $30-million in assets as of January 31, 2008, while YTU had $23-million as of August 31.
DGS.PR.A is not tracked by HIMIPref™. The issue was announced last November.
This entry was posted on Tuesday, September 16th, 2008 at 5:33 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.