RE:RE:RE:RE:RE:RE:RE:terminationTickerTwit wrote: Thanks ... we get the same overall -4.09% deflation on underlying shares, but we're deviating somewhere else (on something small I expect, since what remains is small).
I made some adjustments to my numbers and also tried another method using share counts from the Semi-Annual Report of May 2018.
Now I am getting $13.71using portfolio disclosure values and $13.73 using share counts.
Here is my estimate of upcoming cash flows:
| Income | | | |
| | Dividends | Call Options | Total |
| December | $646,112 | $24,000 | $670,112 |
| January | $1,200,204 | $24,000 | $1,224,204 |
| February | $499,278 | $24,000 | $523,278 |
The value for call options is from the Semi-Annual report for May 2018 which was $145,500 net of transaction costs, so I assume that works out to $24,000 per month on average.
| Expenses | | | | |
| | Preferred Divs | Fees | Net | Bal |
| December | $718,997 | $29,852.89 | -$48,885 | -$48,885 |
| January | $718,997 | $29,852.89 | $505,207 | $456,322 |
| February | $718,997 | $29,852.89 | -$195,718 | $260,604 |
Lacking any capital gains, there will not be much NAV growth in the near future. The
Net is dividends + call options income subtract Preferred dividends paid out subtract fees.
For an idea of monthly cash flow this is what it costs to pay out either just the Preferreds or Preferreds + Class A shares:
| | Per Month | | | |
| Preferred | $718,996.86 | | | |
| Class A | $1,643,421.40 | | | |
| Fees | $29,852.89 | | | |
| Preferred Only | $748,849.76 | with fees | | |
| Pref + Class A | $2,392,271.16 | with fees | | |
Comparing this to the dividend income shown above, one can see how important it is for the market to be rising in order to be able to pay the Class A shares.
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For a comparison of Split Share Funds, see this blog: