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 Dec 21, 2018 1:28pm

137 Views

Post# 29147250

RE:RE:RE:Fund Termination

DawnPhoenix wrote: They extend even if the NAV is below 15$ ?

They recently extended FTU to Dec. 2024 and the NAV is $7.67. That is the unit NAV. Even the Preferred share is underwater, i.e. should be valued at $10, but since NAV is $7.67, the Preferred is worth $7.67 and the Class A has no NAV value (although is trading at $0.47). FTU has not made a distribution since mid 2008.

They also announced a consolidation of the Class A shares for FTU and a dividend increase for the Preferred. It used to pay 5.25% of NAV, now it will pay a maximum of 10%.

Immediately after the special retraction payment on December 17, 2018, there will be 1,901,817 Preferred shares and 2,804,666 Class A shares outstanding. In order to restore an equal amount of shares outstanding for each class, Class A shareholders on record as at December 18, 2018 will receive approximately 0.678090368 Class A shares for each Class A share outstanding. The consolidation is a non-taxable event.

With an increased payment to the FTU Preferreds, it looks like the managers don't expect the FTU Class A to ever recover.

So unless something really extraordinary happens in the markets, the funds will keep going.

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

Link: Split Share Review

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