Premium Income Corp T.PIC.A

Alternate Symbol(s): T.PIC.P.A

Premium Income Corporation is a split share company. The Fund’s investment objectives are to provide Preferred shareholders with cumulative preferential quarterly cash distributions of $0.215625 per share, representing an annual yield of 5.75% on the original issue price of the Preferred shares; to provide Class A shareholders with quarterly cash distributions of $0.20319 per share, and to return the original issue price to holders of both preferred share and Class A shares upon windup of the Fund. It invests at least 75 % of its net asset value (NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the Banks) and also invests up to 25 % of its NAV in common shares of National Bank of Canada. In addition, the Fund may purchase public investment funds, including exchange-traded funds and other Mulvihill Funds. Its investment manager is Mulvihill Capital Management Inc.

TSX:PIC.A - Post by User

Premium Income Corp > NAV

<< Previous

Bullboard Posts

Next >>

Comment by wolverine99on Dec 14, 2023 4:43pm

103 Views

Post# 35785508

RE:RE:NAV

Found this:

The following is an explanation a researcher got from Strathbridge Asset Management after inquiring about the NAV Threshold

The distribution policy of the Premium Income Corporation fund is made at the discretion of the board of directors as they meet each quarter. There is not have a NAV trigger in the prospectus for determining the distribution levels.

Some of the factors the board considers are the Net Asset Value of the A share, the coverage ratio for the Preferred share, and the outlook for market and economic conditions for the longer term.

In past we have reduced the class A distribution in response to a decline in NAV. The first instance was during the financial crisis that hit in 2008 and 2009. More recently COVID-19 upset markets in the early part of 2020.

The April 2020 class A distribution was cut to $0.10 per share. The March 31st class A NAV used to determine that distribution at that time was $0.84.
The prior distribution in January was $0.20319. At the time that distribution was determined the class A net asset value was $5.41 (December 30, 2019).

The distribution was fully restored to $0.20319 quarterly for the April 2021 payment.