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North American Financial 15 Split Corp T.FFN

Alternate Symbol(s):  FNCSF

North American Financial 15 Split Corp. is a Canada-based mutual fund corporation, which invests in a portfolio of over 15 financial services companies. It offers two types of shares, such as Preferred Shares and Class A Shares. Its investment objectives with respect to preferred shares are to provide holders of preferred shares with cumulative preferential monthly cash dividends in the amount of over 5.5% annually and to pay the holders of the preferred shares a certain price per preferred share on or about the termination date. Its investment objectives with respect to class A shares are to provide holders of class A shares with regular monthly cash distributions and to permit holders to participate in all growth in the net asset value of the Company for a specific price per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying a specific price per preferred share. Its investment manager is Quadravest Capital Management Inc.


TSX:FFN - Post by User

Comment by alkhoron Jan 15, 2021 2:36pm
185 Views
Post# 32307718

RE:RE:FFN news

RE:RE:FFN newsPonzi schemes always need new investors in order to keep payments flowing to the existing shareholders. 

I never have figured out how they manage to pay the dividends they do. At the initial issue price of $25 for a class A share plus a preferred share and monthly dividends of $0.10 and $0.04375 they are paying out at a combined rate of 6.876% while investing in companies which pay 4%. That 3% shortfall has to come from somewhere. They may make some trades but that is a risk. The NAV of all the funds may start at $25 but quickly end up close to $15 where they stay by not paying the class A dividends if it falls below. Issueing new shares brings in additional money but makes the monthly payments higher.

Having said this, some funds like DFN have paid both dividends for at least the past 15 years with the exception of missing a few class A dividends earlier last year, so they must be doing something right.
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