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Canadian Life Companies Split Corp T.LFE

Alternate Symbol(s):  CLSPF | T.LFE.PR.B

The Companys investment objectives are (i) to provide holders of Preferred Shares with fixed cumulative preferential monthly cash dividends in the amount of $0.04375 per Preferred Share to yield 5.25% per annum on the original issue price (ii) to provide holders of Class A Shares with regular monthly cash distributions targeted to be $0.10 per Class A Share to yield 8.0% per annum on the original issue price and (iii) to return the original issue price to holders of both Preferred Shares and Class A Shares at the time of the redemption of such shares on December 1, 2012. The Company will invest primarily in a portfolio of common shares of Proceeds: (the ``Portfolio) which will include the following publicly traded Canadian life insurance companies (the ``Portfolio Companies), each of whose shares will generally represent no less than 10% and no more than 30% of the net asset value (``Net Asset Value) of the Company: Great-West Lifeco Inc.


TSX:LFE - Post by User

Comment by Jack256on Nov 07, 2019 2:41pm
114 Views
Post# 30323169

RE:LFE unit NAV now slightly above 15$

RE:LFE unit NAV now slightly above 15$

I have the portfolio up as of right now about 4.4% from the Oct 31 valuation of $14.47 That would, in theory, put it about $15.10
One caveat to think about, they pay a very large distribution to the preferred shares and don’t take in enough to cover it, so they probably have
a large amount of the portfolio where the use call options to generate extra cash, that in turn will put a bit of a lid on the upside as some of the shares
in the portfolio will be called away. That being said it still trades at a substantial discount.

 

mouserman wrote:  Quadravest just updated the website with reports to the end of October.
LFE was holding 14% in cash , so that means the value of the holdings was 12.45
The biggest gainer in the lifecos was IAG and that is LFE's  smallest holding, so that reduces the gains a bit. Overall LFE portfolio should have gained just under 5%  with todays move, so 12.45 x 5% = 63 or so.
So that should put  the UNIT NAV up around  15.10 ,but just a guesstimate and todays close may be higher or lower.

 

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