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Financial 15 Split Corp T.FTN

Alternate Symbol(s):  T.FTN.PR.A | FNNCF

Financial 15 Split Corp. is a mutual fund, which invests in a portfolio consisting of over 15 financial services companies. The Company 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 an amount of over 6.75% annually and to pay the holders of the Preferred Shares approximately $10 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 over $15 per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying over $10 per Preferred Share. The Company’s investment manager is Quadravest Capital Management Inc.


TSX:FTN - Post by User

Comment by mousermanon Apr 22, 2021 11:09am
375 Views
Post# 33044642

RE:RE:RE:FTN vs. FFN?

RE:RE:RE:FTN vs. FFN?
canoehead wrote: Thanks Ed and mouserman. Great info. I think I will get my feet wet by taking equal dollar positions in each to watch and see how it goes. Do you think the premium of 11.7% on FFN is getting into sketchy territory or does it usually trade around that high due to the high payout?

A premium of 10 to 15% is not real bad for high yielding splits that have over a 1$ of safety factored in, and banks and lifecos are quite safe, especially given the current valuations, and stellar Q reports from those.
I generally dont hold splits that carry a premium of more  than 20% above the real NAV of the common shares. DGS at the valuation today i consider sketchy as it is currently only about 50 or 60 cents above the 15$ threshhold for paying the commons. I believe the premium is about  18 % or so at the high of the day trade of 6.45.
And today DGS is also seeing a lot more red than green, altho the top 3 stocks in the fund are up.
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