Enbridge Inc T.ENB

ENS. TO an interesting alternative way to play ENB

[Marner16]

This showed up on TD's Webbroker news on Tuesday:

E Split Falls after Reporting Closing of Overnight Offering; Plans to Invest in Enbridge Shares

09:58 AM EDT, 04/27/2021 (MT Newswires) -- E Split Corp. (ENS.TO) on Tuesday dropped 0.4% on last look after reporting the closing of an overnight offering of class A and preferred shares for gross proceeds of about $52.7 million.

The class A shares and preferred shares will trade on the Toronto Stock Exchange under the existing symbols ENS and ENS.PR.A, according to a news release.

The class A shares were offered at $13.60 per class A share to yield 11.5% and the preferred shares were offered at $10 per preferred share to yield 5.3%.

E Split said it plans to invest in common shares of Enbridge Inc. (ENB.TO), an oil and gas pipeline, gas processing, and natural gas distribution company.

Price: 13.25, Change: -0.05, Percent Change: -0.38

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Robert Lauzon appears regularly on BNN and is part of the mgmt team at Middlefield Funds.  They offer a fund (ENS.TO) which they call E-Split which they tout as "Enhanced Participation in Enbridge".  The fund pays out $0.13 per month or $1.56 annually for a current yield of 11.76%

The fund was initiated in July 2018 and originally paid out $0.10 per month which represented a yield of 8% on the $15 offering price. The monthly payout was raised to $0.13 in May 2019.

As a split fund, the investment relies on capital growth to compensate for the yield overpayment.

The fund represents an interesting alternative to playing ENB common shares.

[dileas48s]

I found ENS about six weeks ago and moved about a third of my ENB position into it.  I did some scenarios here:   https://www.portfoliovisualizer.com/backtest-portfolio   with the DRIP, and while ENS is inherently more risky it backtests well as the better performer.  I definitely like the monthly compounding of the DRIP as it is nudges the total return a bit