RE:RE:RE:RE:RE:RE:DFN unit nav to June 21 = approx: $14.73 Not looking to be contentious, but I take it as a given the distributions paid out by split capital shares exceed the dividends collected from their underlying portfolios.
The assertion, all the split capital shares in general erode over time, since, as proof, the shares were issued at $15.00, but their NAVs are now nowhere near those values, seems, at least to a degree, questionable.
According to Mm, whose regular estimate of the NAV of various splits is typically quite accurate and with your estimates usually matching his reasonably closely, FTN’s post distributions NAV is $17.79, which is more than 18.5% over $15.00 and provides in excess of 55% of distributions safety. Similarly, MM has LBS pre-distribution NAV at $17.00, more than 13% over $15.00 and with a 40% margin of safety and LCS’ NAV at 16.69, more than 11% over $15.00 and near 34% margin of safety. GDV’s sponsor, the Brompton Group, has GDV’s recent NAV at $20.43, more than 36% over $15.00 and a margin of distributions safety of nearly 110%.
From what I can determine, ENS’ current NAV is $21.94, more than 46% over $15.00, with its margin of distributions safety of nearly 140%.
Admittedly, DFN at $14.91 is more than half a percentage point below $15.00, but it is not what I would describe as being “nowhere near” its issued value of $15.00.
The above-mentioned split shares are those I follow and have invested in. I suspect there are split share duds out there, and that is why I asked for specificity as to which ones you hold are not sustainable over the long term. GLTA