Investment Executive reported yesterday:
Toronto-based Faircourt Asset Management Inc. is migrating two closed end funds to the NEO Exchange from the Toronto Stock Exchange (TSX), Aequitas NEO Exchange Inc. announced Wednesday.
Faircourt Split Trust, including both units (FCS.UN) and preferred securities (FCS.PR.C), and Faircourt Gold Income Corp. (FGX) will be voluntarily delisted from the TSX effective Dec. 20, and begin trading on NEO on Dec 21, NEO says in a news release.
“We look forward to migrating our funds to NEO later this week and begin realizing costs savings with our listing fees. We are committed to pass along these savings to our securityholders,” says Charles Taerk, president and CEO, Faircourt, in a statement.
Well, I find it hard to believe that Faircourt’s all that pleased about it – when you’re pleased about a business development, you usually put a notice about it on your website – but the Faircourt website has nothing I can find.
Of course, given their performance as reported in the 2017 Annual Report, perhaps they want to draw as little attention to the fund as possible:
| Since Merger | Past 5 Years | Past 3 Years | Past 1 Year | |
| Faircourt Split Trust | 7.12% | 10.03% | 10.88% | 18.45% |
| Blended Index | 10.22% | 12.41% | 8.92% | 10.52% |
| S&P/TSX Composite Total Return Index | 6.87% | 8.63% | 6.59% | 9.10% |
| S&P 500 – CDN$ Total Return Index | 18.05% | 21.22% | 14.35% | 13.83% |
Note that the figures reported above for “Faircourt Split Trust” are for the Capital Units only, which at year-end 2017 and year-end 2016 were levered up with the preferred securites big-time … roughly $2 of preferreds per $1 Capital Unit.
FCS.PR.C commenced trading 2014-12-30 after being announced 2014-12-10. It has been tracked by HIMIPref™ but relegated to the Scraps subindex due to credit concerns. It will no longer by tracked by HIMIPref™
I obviously am not understanding something here. The performance figures presented above seem quite good. Why would they want to avoid drawing attention to them?
The performance figures are for the Capital Units only, which are levered up to hell ‘n’ gone. They should have done much better throughout, given the performance of the underlying index.