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Life & Banc Split Corp T.LBS

Alternate Symbol(s):  LFBCF | T.LBS.PR.A

Life & Banc Split Corp. (the Fund) is a Canada-based mutual fund company. The Fund's investment objective is to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions and to return the original issue price on the maturity date, and to provide holders of Class A shares with regular monthly cash distributions and the opportunity for growth in Net Asset Value per Class A share. To achieve these objectives, the Fund invests in a portfolio comprised of common shares of approximately six Canadian banks and four publicly traded Canadian life insurance companies. The Fund also writes covered call options and cash-covered put options in respect of the portfolio to generate additional distributable income for the Fund and/or to reduce the volatility of the Fund. The Fund's investment manager is Brompton Funds Limited.


TSX:LBS - Post by User

Bullboard Posts
Comment by gpqithspon Apr 25, 2013 10:28am
215 Views
Post# 21299845

RE: Pardon my ignorance

RE: Pardon my ignorance

No, you can own either one and receive the payback associated to each.  In the class A, it is not a dividend but rather a ROC (Return of Capital).  Depending on your situation, it can be better than a real dividend.  I've owned many of those split shares for years, they are good as long as follow closely on the unit value of 15$.  If well managed on your side, it pays handsomely.  It could be a pain though if you don't follow the unit value closely.  For some of these split shares, I've managed to model their value closely and I follow them daily.  I get out whenever we're getting to close to the 15$ unit value on a downward trend in the market.  On the other hand, it pays to buy when on an upward trend and the unit value is still below 15$.  Good luck.

Bullboard Posts