North American Financial 15 Split Corp. Pref Shs T.FFN.PR.A

North American Financial 15 Split Corp. is a mutual fund corporation, which invests in a portfolio of over 15 financial services companies. It 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, the amount of which is fixed on an annual basis and to pay the holders of the preferred shares a certain price 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 for a specific price per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying a specific price per preferred share. Its investment manager is Quadravest Capital Management Inc.

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North American Financial 15 Split Corp. Pref Shs

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Comment by Jack256on Dec 21, 2019 5:08pm

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Post# 30480314

RE:RE:RE:RE:RE:RE:RE:RE:Midmonth update from Quadravest should be today or tomorrow

Simply put, Splits never change valuations of a stock, (or in this case a fund) at least not in any meaningful way.
So take the last nav report on the 13^th nav= $6.30 after consolidation $6.30 divided by .882238913 = $7.140922835263785 Lets round that down to $7.14 (New consolidated nav)

$10,000.00 ÷ $6.30 = 1587 Shares x .10 cents = $158.70 per month.
$10,000.00 ÷ $7.14 = 1400 Shares x .11335 cents = $158.69 per month.
Or if you own 1587 shares They become 1400 shares after consolidation.

One other note, on this post it was stated, on 10,000 shares after the consolidation you would lose $3.00 per month in distributions due to fractional shares not given out. To be accurate that would only be 3 cents not $3.00 Sorry to split hairs here.

I do agree that people may start to value this fund a bit more after the consolidation but it will also put more pressure on the net asset value due to the higher payout, as it was for FTN.

Best of luck.

mouserman wrote:

sandysouci wrote: !!! to be clear: when you say "and the valuation of commons would be at NAV ( no discount ) at 7.27 ...", please confirm that you cannot compare this number with the CURRENT trading price of $6.33 -- but rather that will be the NAV only AFTER to adjustment, so at that time the trading price might be something like $7.10 (rough guess)

You can compare to current price, because the shares will be rolled back at the time of consolidation ,-- you get .882238913 of an FFN common share for every one you own.
BUT the NAV per unit rises once the UNITS are reduced to 16.55 million from about 18.77 million .
Basically lets say you have 10,000 shares now at 6.30 after consolidation you will have 8822, shares , and the value then AT NAV will be 17.25 or so....
Distributions on the 10,0000 shares would have been 1000$ , and after consolidation would be $997 and change, because you would have 8822 shares that are paid .11335 per share instead of .10 That is due to fractional shares not being given.
The biggest difference will be the safety cushion above the threshhold for paying to commons.
For instance in a market correction of 6 or 7 %, FTN would drop below the 15$ threshhold.. but FFN would still be a buck over ...
normally you should see a premium for safety of distributions , particularly if they are paying a big annual % , like 19% ...