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 > stop loss triggered

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Comment by Eoj123on May 02, 2022 2:15pm

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Post# 34648375

RE:RE:RE:RE:RE:RE:RE:RE:RE:stop loss triggered

Yes, I just spoke with IR and that's what she said also. It's not a guarantee like a bond redemption, but as long as the combined NAV is $10 or more then the preferreds receive the first $10, regardless of the fund being extended or not. Upon extention the prefereds would have the option to take a redemption payout at $10 or stay with the shares as is. So one would assume the market would close the gap to $10 as the extention date gets closer

navgod wrote: The yearly redemptions are only against the unit NAV so no $10 quarantee for the Prefs. The Dec 1 2024 reset/extention does allow the prefs and capital shares to be redeem separately, so as long as the unit NAV exceeds $10 you would get $10 back for redeemed Pref shares.

EdPaquette wrote:

Eoj123 wrote:
Long before you exercise the option to redeem, i think quadravest will make the selling price go back over 10 by raising the dividends for the preferreds. You can only redeem once a year I think. Maybe someone else is familiar with redemption.

So Ed, question for you. How does the guarantee $10 work, is it at the reset date Dec1 2024 and is it regardless of the fund extending for another 5 years or not?

Do/would they just "re-set" the share price of ffn.pr to $10 or is it a payout to the existing holders via cheque, I suppose that would only happen if the did not do the extention. I think the ATM certainly hinders the current price also btw

Just trying to wrap my head around it