SBC.PR.A : Semi-Annual Report, 19H1

Brompton Split Banc Corp. has released its Semi-Annual Report to June 30, 2019.

Figures of interest are:

MER: “The MER per unit, excluding Preferred share distributions, agents’ fees and issuance costs, was 1.02% for the first six months of 2019, compared to 0.98% in 2018.”

Average Net Assets: We need this to calculate portfolio yield. There was issuance of units in early 2019, so our first estimate is calculated as [162.0-million (NAV at beginning of period) + 192.1-million (NAV at end of period)] / 2 = 177.0-million. The second estimate is based on total preferred share dividends of 2.177-million divided by 0.25/share, implies 8.708-million units outstanding, with an initial NAVPU of 20.66 and a final NAVPU of 22.06, average 21.36, implies average assets of 186.0-million, which is surprisingly good agreement! Call it average Net Assets of $182-million.

Underlying Portfolio Yield: (3.689-million dividends + negligible securities income) times two because it’s only half a year divided by average net assets of 182-million is 4.05%

Income Coverage: Net Investment Income (excluding capital gains and issuance costs; and after expenses) of 2.798-million divided by Preferred Share Distributions of 2.177-million is 129%.

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