RE:RE:RE:any idea why trading above NAV now? ntnilelyn wrote: any thoughts on the conversion ratio or ftn as an asset?
FTN carries the highest premium to NAV of the split share corporations I follow, currently about 38%. The conversion offer reduces the discount by about half, but that is still too high in my opinion. There are other split shares available with a lower premium and a higher asset base coverage for paying Class A shares.
If one were to go ahead with the conversion, I suggest keeping an eye on the NAV. With a NAV yield of 20% (annual distribution of $1.5084, divided by last reported NAV of $7.40) , it may have some challenges ahead. The market price yield is 14%, so that 6% spread is lost due to the premium.
It is safe for a while, but not as strong as some others.
For a comparison of Split Share Funds, see this blog: