Brompton Lifeco Split Corp T.LCS

LCS realtime UNIT NAV @ $15.81

[mouserman]

So a big bounce back already today, as IAG up nearly 3 %, and  that makes the gain about 10 cents since yesterday.

[Hulk27]

Um, I'm a bit of a noob with these split shares - but I bought some LCS, so I need to learn. :) When you say Unit NAV is $15.81 - is exactly $10.00 the value of the Preferred Share? Or does that also fluctuate? I know the market price of the Preferred Share does fluctuate a bit, but in your NAV calculation - I was just curious if it stays locked in at $10. Thanks muchly!

[mouserman]

When Brompton AND Quadravest do their calculations for UNIT NAV , the preferreds are always at 10$ value, no matter where they are trading. Most  of the preferred shares have the condition that you can redeem the preferreds for 10$, no matter where and when you acquired them, or what the preferreds are trading at when the fund extension date comes.

[Mmb060]

If reset date is less than 2yr, buying these prefs make for excellent returns.

[Experienced]

Agreed - especially of you can buy the prefs for less than 10 dollars.

[EricDividends]

First of all, welcome to the world of split shares, LCS is currently probably one of the best values out there. The NAV is basically used to figure out if and when the distributions will be paid on the Class A shares. The Preffered shares will alwyas get their dividend first. The NAV price really doesn't matter to the Preffered Shareholders and may fluctuate by a couple pennies above $10

[Hulk27]

Thank you for all the explanations. The high dividend rates are definitely what drew me towards LBS and LCS in the first place - but I didn't fully understand the $15.00 NAV requirement for payment of the dividends - now that all makes sense. I'm happy to join the world of Split Shares :)

[Mmb060]

Brompton web site has a primer that you can review