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 > FFN consolidation

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Comment by AnEducatoron May 03, 2023 12:26am

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Post# 35426685

RE:RE:RE: FFN consolidation

The company's Annual Information Form confirms that in 2014, the right to consolidate any of the classes of shares was established, but only associated with the Special Retraction Right occuring on every termination date. So unless I am missing something, a consolidation is off the table for the next 19 months, till December 1, 2024 to be exact.

Certainly, if and when it happens, I would consider an increase in the NAV as being a highly positive development. Potential investors can significantly reduce their risk of loss by simply refraining from paying a premium.

Intellectual wrote: A consolidation is not necessarily a death knell for capital shareholders. After all, if the NAV rises above $5.00, the distributions would begin to flow once again. The only question of interest is whether the premium would increase or decrease post-consolidation. Anyone paying a price at or below the NAV would have little reason to be concerned.

Splitfunding wrote:
Pesyk1 wrote: What are the chances of a consolidation for FFN . Thank you for your input .
As mentioned it can't happen for a while but I would be concerned if the premium on capital shares continues to be persistent and if it increases over time.