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Financial 15 Split Corp T.FTN

Alternate Symbol(s):  T.FTN.PR.A | FNNCF

Financial 15 Split Corp. is a mutual fund, which invests in a portfolio consisting of over 15 financial services companies. The Company 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 an amount of over 6.75% annually and to pay the holders of the Preferred Shares approximately $10 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 over $15 per unit, by paying holders on or about the termination date such amounts as remain in the Company after paying over $10 per Preferred Share. The Company’s investment manager is Quadravest Capital Management Inc.


TSX:FTN - Post by User

Comment by AXPROon Sep 23, 2023 1:09am
237 Views
Post# 35650459

RE:RE:RE:RE:Zero sum game

RE:RE:RE:RE:Zero sum gameTake a look at the Common share document details for 2022, likely 2023 will be comparable, you can find it on the Quadravest website for FTN. 
I will add a screenshot below.

It shows that the monthly dividend is composed of 2 amounts, 1 for Eligble dividend the majority and 1 for Capital gains dividends.
This latter one requires some deeper understanding of 'Corporations investing money'. When a Corp invests and makes capital gains, 50% of these capital gains are 'added to a CDA account'.
CDA stands for Capital Dividend Account. The Corp can 'transfer' these CDA amounts exempt from taxes to the shareholders.

Now if you invest inside a TFSA, there wouldn't be any added value, since all receipts inside the TFSA are free of tax. But if you invest in a personal investment account or in your own corporate investment account, these CDA 'payouts' are tax free receipts.
So you should only report the received Eligble dividends amounts on your T1 or T2 (corp) or T3 (trust), not sure if there are other T numbers.

So what this means is you actually are getting a better 'net yield' as only the Eligble divi's will be subject to tax and not the capital gains dividends.

For sure, take my info as something 'interesting' and get your true info from a tax accountant, but it should be the same. Note if your tax accountant has never done a corporate tax return that includes investment results, just contact CRA yourself.

Regards,
AXPRO




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