Brompton Split Banc Corp T.SBC

Alternate Symbol(s): T.SBC.PR.A

Brompton Split Banc Corp. (the Fund) is a Canada-based mutual fund company. The Fund's investment objectives are to provide holders of Preferred shares with fixed, cumulative, preferential quarterly cash distributions and to return the original issue price of $10.00 per Preferred share to shareholders at maturity and to provide holders of Class A shares with regular monthly cash distributions, targeted to be at least $0.10 per Class A share, and the opportunity for growth in Net Asset Value per Class A share. The Fund invests in a portfolio of common shares of the six Canadian banks. In addition, the Fund may hold up to 10% of the total assets of the portfolio directly in investments in global financial companies or indirectly through exchange-traded funds for the purposes of enhanced diversification and return potential. The Fund's manager is Brompton Funds Limited.

TSX:SBC - Post by User

Brompton Split Banc Corp > SBC unit nav will have dropped below 25$ here...

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Comment by slston Jun 29, 2021 3:29pm

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Post# 33467432

RE:SBC unit nav will have dropped below 25$ here...

Generally speaking its a function of the Funds Tax position. If they have a high Capital gains, they need to distribute the gains otherwise the fund is taxable.

If it is a small amount than they might distribute cash, however, if it is a large amount, they will distribute A shares, and issue more preferred shares to equalize Preferred and A shares.

SBC and BK both maybe in that predicament of having more capital gains than usual and "IF" that is the case we will get bonus shares or cash in due course.

Sometimes, it can be a reorganization, if the price is too high and effective yeild is not attactive enough. It that case, I agree, they will wait to have a high degree of certanity that price stays high.

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