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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Comment by ofnidon Nov 18, 2016 1:20pm

222 Views

Post# 25481860

RE:RE:RE:RE:Annual YIELD on current share price 22.5%

I look at LFE this way -- if we are at an interest rate inflection point, that is, somewhat higher rates in the future then this is obviously a major tailwind for life insurers' earnings. Recent earnings for MFC and SLF probably justify most of the recent price bump and then we have the Trump tailwind which may turn into a headwind -- who knows on this one. Institutions have been generally underweight the insurers for a long time so if there is a major shift in thinking on this sector then also a big tailwind. All in all, I think that odds are good for a sustained LFE dividend and potentially for a much higher share price over next few years. Downside is that we have to wait longer if market falls apart and the NAV goes below 15 again. It will be nice to see the Dec dvd!

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