Life & Banc Split Corp T.LBS

Alternate Symbol(s): LFBCF | T.LBS.PR.A

Life & Banc Split Corp. (the Fund) is a Canada-based mutual fund company. The Fund's investment objective is to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions and to return the original issue price on the maturity date, and to provide holders of Class A shares with regular monthly cash distributions and the opportunity for growth in Net Asset Value per Class A share. To achieve these objectives, the Fund invests in a portfolio comprised of common shares of approximately six Canadian banks and four publicly traded Canadian life insurance companies. The Fund also writes covered call options and cash-covered put options in respect of the portfolio to generate additional distributable income for the Fund and/or to reduce the volatility of the Fund. The Fund's investment manager is Brompton Funds Limited.

TSX:LBS - Post by User

Life & Banc Split Corp

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Comment by JohnWalkeron Oct 22, 2019 4:25am

68 Views

Post# 30253878

RE:RE:RE:RE:RE:Premium to NAV

anubis44 wrote: Reluctance to buy LBS at current price might have something to do with this:

https://stockcharts.com/h-sc/ui?s=LBS.TO

The stock is .36 above its 50 day moving average, and .46 above its 200 day moving average.

You can't look at charts to predict price direction for split share funds though. Prices for split share commons is mostly determined by Net Asset Value. At the time I posted my original post LBS was trading at $0.05 premium over NAV. Meanwhile DFS (which I also hold) had an almost identitical NAV but was trading at a premium over NAV of roughly 20 times that of LBS. With those kind of premiums to NAV clearly LBS returns a higher yield and so should be more attractive - yet the reverse is true.

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From now on, dynaCERT instead of Bitcoin or NVIDIA?