Brompton’s Life & Banc Split Corp has released its Semi-Annual Report, 2018 in August.
Figures of interest are:
MER: “The MER per unit, excluding Preferred share distributions and issue costs (which were covered by the portfolio’s dividend income), was 0.93% for the first six months of 2018, down from 0.95% for 2017.”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $453.8-million, compared to $413.2-million on June 30, so call it an average of $433.5-million. Preferred share dividends of $5,271,068 were paid over the half year at 0.475 p.a. (boosted to 0.545 after the recent term extension), implying average units outstanding 22.2-million, at an average NAVPU of (20.06 + 18.62)/2 = 19.34, implies net assets of $429.3-million. Say the Average Net Assets are the average of the two estimates, $431.4-million.
Underlying Portfolio Yield: Income received of $8,114,588 divided by average net assets of $431.4-million, multiplied by two because it’s semiannual is 3.76%.
Income Coverage: Net investment income of $6,131,229 (before capital gains) divided by preferred share dividends of $5,271,068 is a very good 116%.
The income coverage calculated is fairly close to “The dividend coverage ratio was about 1.0x.” calculated by DBRS in November 2018.
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LBS.PR.A : Semi-Annual Report, 2018
Brompton’s Life & Banc Split Corp has released its Semi-Annual Report, 2018 in August.
Figures of interest are:
MER: “The MER per unit, excluding Preferred share distributions and issue costs (which were covered by the portfolio’s dividend income), was 0.93% for the first six months of 2018, down from 0.95% for 2017.”
Average Net Assets: We need this to calculate portfolio yield. The Total Assets of the fund at year end was $453.8-million, compared to $413.2-million on June 30, so call it an average of $433.5-million. Preferred share dividends of $5,271,068 were paid over the half year at 0.475 p.a. (boosted to 0.545 after the recent term extension), implying average units outstanding 22.2-million, at an average NAVPU of (20.06 + 18.62)/2 = 19.34, implies net assets of $429.3-million. Say the Average Net Assets are the average of the two estimates, $431.4-million.
Underlying Portfolio Yield: Income received of $8,114,588 divided by average net assets of $431.4-million, multiplied by two because it’s semiannual is 3.76%.
Income Coverage: Net investment income of $6,131,229 (before capital gains) divided by preferred share dividends of $5,271,068 is a very good 116%.
The income coverage calculated is fairly close to “The dividend coverage ratio was about 1.0x.” calculated by DBRS in November 2018.
This entry was posted on Sunday, December 16th, 2018 at 3:47 am 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.