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 > Question on Div

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Comment by AnEducatoron Nov 21, 2023 10:35am

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Post# 35746357

RE:RE:RE:Question on Div

FFN preferreds are unlikely to drop too much given next year's Special Retraction Right which allows shareholders to redeem their shares at NAV which will almost certainly be $10.00.

Beyond the retraction deadline in November 2024, many factors will come into play, not just the dividend policy. The most important, in my opinion, would be the unit NAV since this determines the downside protection for the preferred shares. If the unit NAV remains where it is now or drops further, it would not be surprising to see the preferreds drop to the $9.50 range.

If Quadravest is able to do a consolidation of the capital shares, the downside protection will increase, but it's impossible to tell if this will take place.

As for FTN preferreds, the Special Retraction Date is in 2025, so I would not expect a drop of such magnitude.