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.

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Life & Banc Split Corp > Halted

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Comment by EdPaquetteon Apr 13, 2022 10:24am

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Post# 34600082

RE:RE:RE:RE:RE:RE:Halted

Yes I wonder aboutall these questions too.

Obscure1 wrote: Beuler:

Your post peaked my interest. Could you please share with us what you gleaned from reviewing the last 5 years of financials that turned you off.

Is it Brompton's management, or the fees, or the financial industry, or the holdings, or the percentage breakdown of the holdings, or the risk/reward of splits in general or this particular split?

You mentioned the premium to the NAV, but that is a now thing, not a 5 year thing. The current premium is either a reflection of the market's expectation that the leverage and higher yield of LBS will outperform the underlying securities OR that there is an inefficiency in the current pricing, which you obviously feel will self-correct in the near future. Neither scenario has any historical reference that I can see.

Alternatively, perhaps you simply don't like the outlook for the market, but that is also a now thing, not a 5 year thing.

I'm retired now, but I used to be a financial analyst and I would like to know what you see that I don't see. Hopefully we can have a fruitful discussion to the benefit of the readers of this forum.