North American Financial 15 Split Corp T.FFN

Alternate Symbol(s): FNCSF

North American Financial 15 Split Corp. is a Canada-based 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 in the amount of over 5.5% annually 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 > Looking at investing in this Holding

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Comment by navgodon Apr 25, 2022 12:49pm

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Post# 34629389

RE:RE:Looking at investing in this Holding

The bottom line on FFN is that the risk/reward is ridiculously negative -- almost any other splitshare would be a better trade/investment. The "dividend" is not income but a return of capital. I am comfortable short adding to it today. Would also point out I am a comfortable long in FFN.pr.a and adding to my position. GLTA

mdoldon wrote: VERY risky if you are getting close to retirement. These types of split funds pay out that high yield by relying on capital increase in the underlying fund in order to earn the income needed. They also buy and sell covered options on those underlying stocks.

There is, however, a hard limit. If the NAV per unit falls below $10 in any month, no Dividend will be paid for that period. We went I belive 14 months during 2020/2021 without dividends. During that time, naturally enough, the unit price falls dramatically, as low as the low $3 level at one point.

As long as you can wait for the stock to NAVs to climb back up to payout levels, the high dividend can make up for the montsh with no dividend quite quickly, but if you need income NOW, you'b be stuck in a stock you can't sell except at a loss, and no income.

Many people on these boards are day trading, and there are often ways that you can day trade and earn a profit no matter which way a stock is heading, but it's not what you would call a safe retirement product, its more speculative.