Financial 15 Split Corp T.FTN

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

Financial Services Asset Management

Financial 15 Split Corp. is a mutual fund company. The Company’s investment objectives with respect to the preferred shares are to provide holders of preferred shares with cumulative preferential monthly cash dividends in an amount fixed by the board of directors on an annual basis. Its investment objectives with respect to the Class A shares are to provide holders of Class A shares with regular monthly cash distributions, in an amount to be determined by the board of directors; and to permit such holders to participate in all growth in the net asset value of the Company above $10.00 per unit, by paying such holders, on or about the termination date, such amounts as remain in the Company on the termination date after paying the preferred share repayment amount to the holders of the preferred shares. It invests in a portfolio consisting of 15 financial services companies made up of Canadian and United States issuers. Its investment manager is Quadravest Capital Management Inc.

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Financial 15 Split Corp > Preferred Dividend

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Post by AnEducatoron Nov 07, 2023 12:03pm

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Post# 35721667

Preferred Dividend

Nobody has contemplated the fact that if interest rates decline next year, the preferred share declaration in September for the following year will likely be an unfavourable cut. The 9.25% dividend is guaranteed for 2024, but I expect a reduction for 2025 if the prime rate declines meaningfully.

One should keep this in mind when calculating the annualized yield to termination using a 9.25% assumed dividend for 2025..

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