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North American Financial 15 Split Corp T.FFN

Alternate Symbol(s):  FNCSF

North American Financial 15 Split Corp. is a 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, the amount of which is fixed on an annual basis 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.


TSX:FFN - Post by User

Comment by myNEXTmillionon Dec 13, 2024 9:21am
105 Views
Post# 36360688

RE:RE:RE:RE:FFN share consolidation

RE:RE:RE:RE:FFN share consolidation
Consolidating the prefs will not happen... they are appropriately priced. 

The fund is built around the preferred shares.  The Prefs are the anchor to the fund.  They have a fixed par value, and a fixed dividend rate currently 7%.  The dividend accumulates if the preferred share dividend is not fully paid.  Upon retraction, the Prefs would only get their $10 back.  When the fund reports share numbers, it is the preferred share count they report on.

It is the Class A shares that assumes ALL the risk as a result of the leverage.   That is why they can earn either 0 or 30% of their trading price. Through the ATM program, the fund has the ability to sell either Prefs or A's at market, into the market.  Prefs, no problem.  FFN can sell a $10 par value Pref at $10.55 making for an immediate gain.  The A's, no so easy.  A's are trading at $7.50 or less where the book value (NAV) is over $8.  THAT would hurt the NAV.

The A's should be trading at least the book value (NAV), BUT they are not.  Add 10% more shares, then the A's will have close to the NAV.

mNm





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