Financial 15 Split Corp T.FTN

Alternate Symbol(s): T.FTN.PR.A | FNNCF

Financial 15 Split Corp. is a mutual fund, which invests in a portfolio consisting of over 15 financial services companies. The Company offers two types of shares, such as Preferred Shares and Class A Shares. Its investment objectives with respect to Preferred Shares are to provide holders of Preferred Shares with cumulative preferential monthly cash dividends in an amount of over 6.75% annually and to pay the holders of the Preferred Shares approximately $10 per Preferred Share on or about the termination date. Its investment objectives with respect to Class A Shares are to provide holders of Class A Shares with regular monthly cash distributions and to permit holders to participate in all growth in the net asset value of the Company over $15 per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying over $10 per Preferred Share. The Company’s investment manager is Quadravest Capital Management Inc.

TSX:FTN - Post by User

Financial 15 Split Corp

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Comment by YellowBrickRoadon Nov 08, 2018 11:33am

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Post# 28944180

RE:Strengthening financials make div cut unlikely

anubis44 wrote: reduced potential for a dividend cut for FTN.

For those who are not familiar or are new to split shares, the Class A shares do not cut the dividend in the sense that they reduce it, they cut it as in do not pay at all. Those that pay a $0.10 or in the case of FTN, $0.1257 per month distribution will pay if the NAV is a required value, in this case greater than $15. Other companies, ie Brompton will not pay if the NAV will go below $15 after the distribution.

In other words, with most split shares, other than those like BK, PDV and TXT.UN which pay variable amounts, it is all or nothing, they are either paying or suspended.

For a comparison of Split Share Funds, see this blog:

Link: Split Share Review

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