DFN.PR.A : Annual Report 2019

Dividend 15 Split Corp. has released its Annual Report to November 30, 2019.

EIT Performance
Instrument One
Whole Unit +14.78% +7.44% +6.31% +8.74%
DFN.PR.A +5.38% +5.38% +5.38% +5.38%
DFN +28.51% +10.16% +7.88% +12.65%
S&P/TSX 60 Index +15.23% +10.16% +7.88% +12.65%

Figures of interest are:

MER: “A separate base management expense ratio has been presented to reflect the normal operating expenses of the Company excluding any one time offering expenses. Management expense ratio is based on total expenses for the stated year and is expressed as an annualized percentage of average net asset value during the year.” The figure reported for 2019 is 1.14%

Average Net Assets: The fund increased in size (measure by Whole Units outstanding) by about 20% in 2019; Net Asset Values at the end and beginning of the year were $968.3-million and $778.2-million, for an average of 873.2-million. Preferred share distributions for the year were 25,917,422; at 0.525 per preferred share, this implies an average of 49.367-million units outstanding; the average NAVPU was (18.01 + 17.31)/2 = 17.66; so this calculation implies average net assets of 871.8-million. There’s pretty close agreement between the two methods; call it Average Net Assets of 872.5-million.

Underlying Portfolio Yield: Dividends received of 33.088-million + interest of 0.696-million is 33.784-million divided by average net assets of 872.5-million is 3.87%

Income Coverage: Net Investment Income of 23.555-million divided by Preferred Share Distributions of 25.917-million is 91%.

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