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

Life & Banc Split Corp

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Comment by Intellectualon Jun 25, 2015 1:14pm

426 Views

Post# 23868638

RE:RE:RE:RE:RE:RE:does anyone holding LBS?

At termination, you will only receive the NAV of your holdings. The reason for these offerings is mainly to increase the size of the fund. This is beneficial for the managers because they make more money, but it is also beneficial to investors as it increases liquidity as well as the NAV since these offerings are always at a premium.

The big danger is when the market has had enough and is no longer willing to pay the premium to NAV. To date, the investors always seem to be willing to devour these offerings and the premiums seem to be maintained over the long term.

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