Canadian Life Companies Split Corp T.LFE.PR.B

Primary Symbol: T.LFE Alternate Symbol(s): CLSPF

The Companys investment objectives are (i) to provide holders of Preferred Shares with fixed cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price (ii) to provide holders of Class A Shares with regular monthly cash distributions targeted to be $0.10 per Class A Share to yield 8.0% per annum on the original issue price and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012. The Company will invest primarily in a portfolio of common shares of Proceeds: (the ``Portfolio) which will include the following publicly traded Canadian life insurance companies (the ``Portfolio Companies), each of whose shares will generally represent no less than 10% and no more than 30% of the net asset value (``Net Asset Value) of the Company: Great-West Lifeco Inc.

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Canadian Life Companies Split Corp > Still trading at a 20% discount to NAV!!!

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Comment by mousermanon Apr 29, 2023 10:42am

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Post# 35420730

RE:RE:Still trading at a 20% discount to NAV!!!

On top of the bank exposure in LFE, another negative is the high payout to the preferreds. Paying out 8% to the preferreds somewhat limits how quickly the the UNIT NAV can grow. LCS in comparison only pays out just over 6% to preferreds and that is paid quarterly rather than monthly. As well when and if LFE gets to 15$ distribution rate , the payout to commons is also a higher monetary payout than to LCS commons , so maintaining distributions to commons is much more difficult.

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