Life & Banc Split Corp. Announces Distribution Rates
September 25 2018 - 5:11PM
(TSX: LBS, LBS.PR.A) Life & Banc Split Corp.
(the “Fund”) announces that the distribution rate for the Preferred
Shares for the 5 year term from November 30, 2018 to October 30,
2023 will be $0.545 per annum (5.45% on the original issue price of
$10) payable quarterly. The Preferred Share distribution rate
is based on current market rates for preferred shares with similar
terms. In addition, the Fund intends to maintain the targeted
monthly Class A Share distribution rate at $0.10 per Class A
Share. The Fund previously announced the extension of the
term of the Class A Shares and the Preferred Shares from November
30, 2018 to October 30, 2023. The term extension offers
Preferred shareholders the opportunity to enjoy preferential cash
dividends until October 30, 2023. Since inception in October
2006 to August 31, 2018, the Preferred share has delivered a 5.2%
per annum return.
Since inception and over the 1, 3, 5 and 10 year
periods to August 31, 2018, the Class A share has significantly
outperformed the S&P/TSX Composite Index. The Preferred
share has delivered consistent returns with less volatility and has
significantly outperformed the S&P/TSX Preferred Share Index
over the 5, 10 and since inception periods.
Annual Compound Returns(1) |
1-Year |
|
3-Year |
|
5-Year |
|
10-Year |
|
Since Inception (Oct. 17, 2008) |
|
Life & Banc Split Corp. – Class A |
14.9% |
|
21.4% |
|
18.7% |
|
13.3% |
|
10.0% |
|
S&P/TSX Capped Financials Index |
12.5% |
|
13.4% |
|
12.2% |
|
9.5% |
|
8.0% |
|
S&P/TSX Composite Index |
10.1% |
|
8.7% |
|
8.3% |
|
4.7% |
|
5.6% |
|
Life & Banc Split Corp. – Preferred |
4.9% |
|
4.9% |
|
4.9% |
|
5.1% |
|
5.2% |
|
S&P/TSX Preferred Share Index* |
6.9% |
|
8.0% |
|
2.6% |
|
3.8% |
|
2.4% |
|
⃰ Source: Bloomberg as at August 31,
2018.
Since inception to August 31, 2018, Class A
shareholders have also received cash distributions of $13.25 per
share. Class A shareholders have the option to benefit by
reinvesting their cash distributions in a distribution reinvestment
plan (“DRIP”) which is commission free to participants. Class
A shareholders can enroll in the DRIP program by contacting their
investment advisor.
The Fund invests in a portfolio, on an
approximately equal weight basis, in common shares of six Canadian
Banks and four major publicly traded Canadian life insurance
companies: Bank of Montreal, Canadian Imperial Bank of
Commerce, National Bank of Canada, Royal Bank of Canada, The Bank
of Nova Scotia, The Toronto-Dominion Bank, Industrial
Alliance Insurance and Financial Services Inc., Great-West
Lifeco Inc., Manulife Financial Corporation and Sun Life Financial
Inc.
In connection with the extension, shareholders
who do not wish to continue their investment in the Fund, may
retract their Preferred Shares or Class A Shares on November 29,
2018 pursuant to a special retraction right and receive a
retraction price that is calculated in the same way that such price
would be calculated if the Fund were to terminate on November 29,
2018. Pursuant to this option, the retraction price may
be less than the market price if the security is trading at a
premium to net asset value. As at September 20, 2018, the
Class A share traded at a 4.7% premium to the last reported net
asset value and the Preferred share traded at par. Notice
must be provided to your investment dealer by October 31, 2018 at
5:00 p.m. (Toronto time) in order to exercise this right; however,
investment dealers may have earlier deadlines.
About Brompton Funds
Brompton Funds, a division of Brompton Group
which was founded in 2000, is an experienced investment fund
manager with over $2 billion in assets under management. Brompton’s
investment solutions include TSX traded funds, mutual funds, and
flow-through limited partnerships. For further information,
please contact your investment advisor, call Brompton’s investor
relations line at 416-642-6000 (toll-free at 1-866-642-6001), email
info@bromptongroup.com or visit our website at
www.bromptongroup.com.
(1) Returns are for the periods ended August 31,
2018. The table shows the Fund’s compound return on a Class A
share for each period indicated, compared with the S&P/TSX
Capped Financials Index (‘‘Financials Index’’) and the S&P/TSX
Composite Index (‘‘Composite Index’’). The Financials Index
is derived from the Composite Index based on the financials sector
of the Global Industry Classification Standard. The Composite
Index tracks the performance, on a market weight basis, of a broad
index of large-capitalization issuers listed on the TSX. The Fund
invests in a passively managed portfolio of four Canadian life
insurance companies and six Canadian banks. The Class A
shares of the Fund are not expected to mirror the performance of
the indices, which have more diversified portfolios. The indices
are calculated without the deduction of management fees, fund
expenses and trading commissions, whereas the performance of the
Class A shares of the Fund is calculated after deducting such fees
and expenses. Further, the performance of the Fund’s Class A
shares is impacted by the leverage provided by the Fund’s Preferred
shares. The table also shows the Fund’s compound return on a
Preferred share for each period indicated, compared with the
S&P/TSX Preferred Share Index (“Preferred Share Index”).
The Preferred Share Index tracks the performance, on a market
weight basis, of a broad index of preferred shares trading on the
Toronto Stock Exchange. The Preferred shares of the Fund are
not expected to mirror the performance of the indices which have
more diversified portfolios with varying terms.
You will usually pay brokerage fees to your
dealer if you purchase or sell shares of the investment funds on
the Toronto Stock Exchange or other alternative Canadian trading
system (an “exchange”). If the shares are purchased or sold
on an exchange, investors may pay more than the current net asset
value when buying shares of the investment fund and may receive
less than the current net asset value when selling them.
There are ongoing fees and expenses associated
with owning shares of an investment fund. An investment fund
must prepare disclosure documents that contain key information
about the fund. You can find more detailed information about
the Fund in the public filings available at www.sedar.com.
The indicated rates of return are the historical annual compounded
total returns including changes in share value and reinvestment of
all distributions and do not take into account certain fees such as
redemption costs or income taxes payable by any securityholder that
would have reduced returns. Investment funds are not
guaranteed, their values change frequently, and past performance
may not be repeated.
Certain statements contained in this document
constitute forward-looking information within the meaning of
Canadian securities laws. Forward-looking information may relate to
matters disclosed in this document and to other matters identified
in public filings relating to the Fund, to the future outlook of
the Fund and anticipated events or results and may include
statements regarding the future financial performance of the Fund.
In some cases, forward-looking information can be identified by
terms such as “may”, “will”, “should”, “expect”, “plan”,
“anticipate”, “believe”, “intend”, “estimate”, “predict”,
“potential”, “continue” or other similar expressions concerning
matters that are not historical facts. Actual results may vary from
such forward-looking information. Investors should not place
undue reliance on forward-looking statements. These
forward-looking statements are made as of the date hereof and we
assume no obligation to update or revise them to reflect new events
or circumstances.
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