Canadian Life Companies Split Corp. has released its Annual Report to November 30, 2012.
| LFE / LFE.PR.B* Performance |
| Instrument |
One
Year |
Three
Years |
Five
Years |
Since
Inception |
| Whole Unit |
+16.82% |
-1.11% |
-9.39% |
-2.29% |
| LFE.PR.B* |
+5.82% |
+5.83% |
+5.47% |
+5.43% |
| LFE |
+110.82% |
-25.04% |
-32.07% |
-17.87% |
| S&P/TSX Financial Index |
+17.82% |
+8.12% |
+1.69% |
+6.26% |
| * LFE.PR.B performance includes pre-reorganization LFE.PR.A. It is not clear whether there is an allowance for value of the warrants received on reorganization |
It will be noted that LFE invests in insurance companies, which have had performance far worse than indicated by the S&P/TSX Financial Index, which is dominated by banks.
Figures of interest are:
MER: Calculation of the MER is complicated by the reorganization. Management reports a base figure of 1.59% “excluding any one time secondary offering expenses”, but significant expenses were incurred due to the reorganization which are included in this figure. As an approximation, I have assumed expenses going forward will be the same as in 2012 except that “Shareholder Reporting Costs” will be equal to the 2011 figure of $48,952, not the 2012 figure of $504,603. This results in total adjusted expenses of $1,323,904, divided by average net assets (see below) of $109.9-million = 1.20%. This figure is nicely in the range defined by the MER for the years 2008 – 2011, inclusive.
Average Net Assets: We need this to calculate portfolio yield. Use the Average of the beginning and end of year figures: $103.7-million + $116.1-million = $109.9-million. Note that warrant exercise and retractions will make this figure a nightmare calculation for the next two years.
Underlying Portfolio Yield: Dividends received of 4,536,584 divided by average net assets of 109.9-million is 4.13%
Income Coverage: Net Investment Income of 2,757,029, adjusted for excess reporting costs (see MER, above) of 455,651 is $3,212,680 divided by Preferred Share Distributions of 5,195,633 is 62%.
The reorganization of LFE was discussed on PrefBlog.
This entry was posted on Sunday, March 10th, 2013 at 2:29 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
LFE.PR.B 2012 Annual Report
Canadian Life Companies Split Corp. has released its Annual Report to November 30, 2012.
Year
Years
Years
Inception
It will be noted that LFE invests in insurance companies, which have had performance far worse than indicated by the S&P/TSX Financial Index, which is dominated by banks.
Figures of interest are:
MER: Calculation of the MER is complicated by the reorganization. Management reports a base figure of 1.59% “excluding any one time secondary offering expenses”, but significant expenses were incurred due to the reorganization which are included in this figure. As an approximation, I have assumed expenses going forward will be the same as in 2012 except that “Shareholder Reporting Costs” will be equal to the 2011 figure of $48,952, not the 2012 figure of $504,603. This results in total adjusted expenses of $1,323,904, divided by average net assets (see below) of $109.9-million = 1.20%. This figure is nicely in the range defined by the MER for the years 2008 – 2011, inclusive.
Average Net Assets: We need this to calculate portfolio yield. Use the Average of the beginning and end of year figures: $103.7-million + $116.1-million = $109.9-million. Note that warrant exercise and retractions will make this figure a nightmare calculation for the next two years.
Underlying Portfolio Yield: Dividends received of 4,536,584 divided by average net assets of 109.9-million is 4.13%
Income Coverage: Net Investment Income of 2,757,029, adjusted for excess reporting costs (see MER, above) of 455,651 is $3,212,680 divided by Preferred Share Distributions of 5,195,633 is 62%.
The reorganization of LFE was discussed on PrefBlog.
This entry was posted on Sunday, March 10th, 2013 at 2:29 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.