Canadian Life Companies Split Corp T.LFE

Alternate Symbol(s): CLSPF | T.LFE.PR.B

Financial Services Asset Management

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.

TSX:LFE - Post by User

Canadian Life Companies Split Corp

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Post by kurtwalteron Dec 03, 2013 7:01pm

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Post# 21966181

The company's answer to my question: why the drop?

Insurance companies were down today which could have affected LFE's trading price. The markets will dictate what LFE trades at however it typically trades close to its intrinsic value (the NAV less $10). The most recent NAV was $15.21 ($14.52 diluted) as at November 29th. Also most investors adopt a buy/hold strategy thereforetrading volumes are typically low. Because of this, the buying and selling of shares can have a greater impact on the price temporarily.

Investors may also be doing some selling of LFE to capture profits as we move closer to year end. Please be assured there has not been any news from the Company to warrant any selling.

My comment: one-day chart does not show that one big order caused the drop.)

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