Dividend 15 Split Corp T.DFN

Alternate Symbol(s): DFNPF | DVSPF | T.DFN.PR.A

Dividend 15 Split Corp. is a Canada-based mutual fund, which invests primarily in a portfolio of dividend yielding common shares, which includes approximately 15 Canadian companies. The Company offers two types of shares, including Preferred shares and Class A shares. Its investment objectives with respect to Preferred Shares are to provide holders with fixed cumulative preferential monthly cash dividends in an amount of $0.04583 per Preferred share to yield 5.5% per annum on the $10 repayment amount and to return the $10 repayment amount to their holders on the termination date. Its investment objectives with respect to Class A Shares are to provide holders with regular monthly cash distribution targeted to be $0.10 per Class A share and return the original issue price to their holders on the termination date. The net asset value per unit must remain above the required $15 per unit threshold for distributions to be declared. Its investment manager is Quadravest Capital Management Inc.

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Dividend 15 Split Corp > Termination date / prospectus verbiage

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Post by punjabi416on Nov 15, 2023 10:27am

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Post# 35736689

Termination date / prospectus verbiage

Hi,

Can someone please help me understand the verbiage surrounding the termination date from the prospectus document?

I am a Class A shareholder and my understanding of the wording of Class A Shares (b) "on or about the termination date, to pay the holders of class A shares at least the original issue price of those shares" is that when the fund closes I would receive at least $15 despite the market value (which is currently ~$4).

I am positive I might be missing something here as why would investors not flock to DFN at current levels if they're guaranteed $15 in the event of a *potential* termination.

Appreciate the help!

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