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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

Post by mousermanon Nov 19, 2020 12:56pm
776 Views
Post# 31933618

LBS losing some ground today

LBS losing some ground todayWas a really healthy rise in UNIT NAV in a relatively short period of time for LBS. So some profittaking not unexpected here. 
Personally i have very high % of the my holdings in LBS at a very low average cost... under 4.85
SO in no panic to sell with ex dividend date approaching next week. LBS has about 1.40 cushion for paying to commons, so I am unwilling to sell at a discount to the REAL NET ASSET VALUE here.
If I was in DFN i would be dumping at this point, as it is heading back down very close to the 15$ threshhold. Not interested in a split fund common on the bubble of the threshhold trading at a big premium to the real value in the fund.
SBC still attractive at these levels as well, as it is very near its NAV , and has almost 4 $ of cushion for paying. If you are looking at income from distributions for the next 6 months or so much better to look at SBC, or perhaps some of the preferred shares . I am not as bullish on a quick turnaround in the North American economies in the next year... it will take a long time to undo the damage already done, never mind what is to come with COVID now raging thru the US and Canada.
The second wave is now worse than the initial one last spring, as far as the number of cases and hospitalizations is concerned. Lockdowns are coming in a big way, make no mistake on that.
Biden will not be following in Trumps footsteps in controlling the Pandemic.
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