{"id":21360,"date":"2013-03-10T14:29:09","date_gmt":"2013-03-10T18:29:09","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=21360"},"modified":"2013-03-10T14:29:09","modified_gmt":"2013-03-10T18:29:09","slug":"lfe-pr-b-2012-annual-report","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=21360","title":{"rendered":"LFE.PR.B 2012 Annual Report"},"content":{"rendered":"

Canadian Life Companies Split Corp. has released its Annual Report to November 30, 2012<\/a>.<\/p>\n

\n\n\n\n\n\n\n\n\n
LFE \/ LFE.PR.B* Performance<\/td>\n<\/tr>\n
Instrument<\/td>\nOne
Year<\/td>\n		Three
Years<\/td>\n		Five
Years<\/td>\n		Since
Inception<\/td>\n<\/tr>\n
Whole Unit<\/td>\n+16.82%<\/td>\n-1.11%<\/td>\n-9.39%<\/td>\n-2.29%<\/td>\n<\/tr>\n
LFE.PR.B*<\/td>\n+5.82%<\/td>\n+5.83%<\/td>\n+5.47%<\/td>\n+5.43%<\/td>\n<\/tr>\n
LFE<\/td>\n+110.82%<\/td>\n-25.04%<\/td>\n-32.07%<\/td>\n-17.87%<\/td>\n<\/tr>\n
S&P\/TSX Financial Index<\/td>\n+17.82%<\/td>\n+8.12%<\/td>\n+1.69%<\/td>\n+6.26%<\/td>\n<\/tr>\n
* LFE.PR.B performance includes pre-reorganization LFE.PR.A. It is not clear whether there is an allowance for value of the warrants received on reorganization<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

It will be noted that LFE invests in insurance companies, which have had performance far worse than indicated by the S&P\/TSX Financial Index, which is dominated by banks.<\/p>\n

Figures of interest are:<\/p>\n

MER: Calculation of the MER is complicated by the reorganization. Management reports a base figure of 1.59% “excluding any one time secondary offering expenses”, but significant expenses were incurred due to the reorganization which are included in this figure. As an approximation, I have assumed expenses going forward will be the same as in 2012 except that “Shareholder Reporting Costs” will be equal to the 2011 figure of $48,952, not the 2012 figure of $504,603. This results in total adjusted expenses of $1,323,904, divided by average net assets (see below) of $109.9-million = 1.20%. This figure is nicely in the range defined by the MER for the years 2008 – 2011, inclusive.<\/p>\n

Average Net Assets: We need this to calculate portfolio yield. Use the Average of the beginning and end of year figures: $103.7-million + $116.1-million = $109.9-million. Note that warrant exercise and retractions will make this figure a nightmare calculation for the next two years.<\/p>\n

Underlying Portfolio Yield: Dividends received of 4,536,584 divided by average net assets of 109.9-million is 4.13%<\/p>\n

Income Coverage: Net Investment Income of 2,757,029, adjusted for excess reporting costs (see MER, above) of 455,651 is $3,212,680 divided by Preferred Share Distributions of 5,195,633 is 62%.<\/p>\n

The reorganization of LFE was discussed on PrefBlog<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Canadian Life Companies Split Corp. has released its Annual Report to November 30, 2012. LFE \/ LFE.PR.B* Performance Instrument OneYear ThreeYears FiveYears SinceInception Whole Unit +16.82% -1.11% -9.39% -2.29% LFE.PR.B* +5.82% +5.83% +5.47% +5.43% LFE …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-21360","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21360"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/21360\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}