PrefBlog

Brompton Group has announced:

Brompton Lifeco Split Corp. (the “Company”) is pleased to announce that the board of directors has approved an extension of the maturity date of the Class A and Preferred shares of the Company for an additional 5 year term to April 29, 2024. The reset preferred share dividend rate for the extended term will be announced at least 60 days prior to the original April 29, 2019 maturity date and will be based on market yields for preferred shares with similar terms at that time.

The term extension allows Class A shareholders to continue their investment in Canadian life insurance companies while offering an attractive distribution rate of 13% (based on the February 28, 2018 closing price) and the opportunity for capital appreciation. Over the last 5 years to January 31, 2018, the Class A share has delivered a 29.1% per annum return, which outperformed the S&P/TSX Capped Financials Index by 15.5% per annum and outperformed the S&P/TSX Composite Index by 21.3% per annum.(1) Since inception to January 31, 2018, Class A shareholders have received cash distributions of $5.13. Class A shareholders have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants.

The term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until April 29, 2024. Over the last 5 years to January 31, 2018, the Preferred share has delivered a 5.8% per annum return, outperforming the S&P/TSX Preferred Share Index by 4.2% per annum with less volatility.(1)
Brompton Lifeco Split Corp. invests in a portfolio of common shares of Canada’s four largest publicly-listed life insurance companies, on an approximately equal weight basis: Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.
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Brompton Lifeco Split Corp. Performance to January 31, 2018
	1 Yr	3 Yr	5 Yr	10 Yr	Incep. (04/18/07)
Class A Shares (TSX:LCS)	5.9%	21.5%	29.1%	1.1%	0.3%
S&P TSX Capped Financials Index	11.6%	14.2%	13.6%	8.8%	7.3%
S&P/TSX Composite Index	6.7%	5.9%	7.8%	5.0%	4.5%
Preferred Shares (TSX:LCS.PR.A)	5.9%	5.9%	5.8%	5.6%	5.5%
S&P/TSX Preferred Share Index	10.9%	3.2%	1.6%	3.3%	2.4%

LCS.PR.A had a treasury offering in January and was upgraded to Pfd-3(low) by DBRS last October. It is tracked by HIMIPref™ but relegated to the Scraps subindex on credit concerns.

This entry was posted on Friday, March 2nd, 2018 at 7:41 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.