Compare Class A Shares of Split-Share Corporations

 

 

 

 

 

 

 

This table is used to compare the class A shares of split share corporations.  In the Canadian Market there are 4 major issuers of these types of shares ( Brompton Funds , Strathbridge Asset Managment, Quadravest Capital Managment and Middlefield Funds )

The main features of a Split share corporation are:

  1. It exists for a defined period of time.
  2. Some type of covered call option strategy is used to further increase profits.
  3. Its main goal is to  transform the risk and investment return  of a basket of shares of conventional dividend-paying corporations into the risk and return of the two or more classes of publicly traded shares in the split share corporation.
  4. The number of preferred shares issued is equal to the number of the class A shares issued by this corporation.
  5. The preferred shares offer relatively high and secure yield. Priority is given to the preferreds over the capital shares in the payment of dividend income and in the eventual return of the full initial price of the shares. 
  6. The capital shares pay a dividend like the preferred shares( As long as the NAV is above the Threshold as defined by the split-corp). Additionally the shares offer participation in the leveraged capital gains/losses of the underlying basket of conventional shares.
  7. The preferreds and class A shares of a split share corporation are independently tradeable and have a very different risk profile. Dividends on Class A shares are not paid once the NAV is below the threhold and unit price suffers great declines.

 

 

The metrics used in the compare table below include

  1. Price: The price of the class A share
  2. Monthly Dividend Amount: Amount to be paid each month, assuming the ‘Net Asset Value’ is above the ‘NAV Threshold’
  3. Variable Dividend: If the dividend is fixed or varies. Sometimes the issuer uses a formula to calculate the dividend before each pay resulting in a different amount with each payment.
  4. Current Yield:  Yield based on todays price
  5. Target Yield: Yield at initial offering of the security
  6. Class A NAV: The Net Asset Value for the Class A (Capital) share as calculated by the issuer. Compare this to the current price to determine if its mispriced.
  7. Net Asset Value: The sum of (NAV of the preferred + NAV of the common). At regular intervals the issuer publishes the NAV of the preferred and Class A shares. I add the two together to come up with the Net Asset Value to the split share.
  8. NAV As Of Date: This is the date the issuer last published the NAV of the preferred and Class A shares.
  9. NAV Threshold: The dividend on the common share is only paid if the ‘Net Asset Value’ is  higher than “NAV Threshold”.

Class A shares, only pay dividends if the Net Asset Value of the split-corporation is greater than the Threshold value. I have highlighted  the ones in this category with pink background color.

Last Updated: Market Data Jul-31 09:31, Model Metrics Jul-31 09:34
IssuerSymbolPriceMonthly Dividend AmountVariable DividendCurrent YieldTarget YieldClass A NAVCombined Net Asset ValueNAV As Of DateNAV ThresholdTotal Class A DistributionsTotal DistributionsDescription
Brompton FundsLCS$6.34$0.075N14.20%6.00%$6.05$16.092021-07-29$15.00$6.71$14.45Brompton_Lifeco_Split_Corp
Brompton fundsSBC$14.64$0.100N8.20%8.00%$15.10$23.172021-07-29$15.00$18.45$21.81Brompton_Split_Banc_Corp
Brompton FundsOSP$1.40$0.100N85.71%8.00%$0.00$10.152021-07-29$15.00$3.22$11.20Brompton_Oil_Split_Corp
QuadravestBK$12.23$0.000Y0.00%10.00%N/A$23.162021-07-15$15.00N/A$25.17Canadian_Banc_Corp
Brompton FundsDGS$6.59$0.100N18.21%8.00%$5.99$15.702021-07-29$15.00$13.99$14.12Dividend_Growth_Split_Corp
Middlefield fundsENS$14.80$0.130N10.54%8.00%13.48$23.522021-07-29$15.00N/AN/AE_Split_Corp
Brompton FundsGDV$12.08$0.100N9.93%8.00%$11.75$21.462021-07-29$15.00$3.75$10.87Global_Dividend_Growth_Split_C
QuadravestFTN$11.17$0.100N10.74%8.00%N/A$21.312021-07-15$15.00N/A$30.70Financial_15_Split_Corp
Brompton FundsLBS$9.38$0.100N12.79%8.00%$9.49$19.532021-07-29$15.00$18.45$19.97Life_Banc_Split_Corp
QuadravestXTD$5.00$0.050N12.00%9.84%N/A$14.092021-07-15$12.50N/A$14.00TDb_Split_Corp
Middlefield fundsRS$18.86$0.100N6.36%8.00%17.75$27.792021-07-29$15.00N/AN/AReal_Estate_and_E-Commerce_Spl
StrathbridgePIC.A$6.44$0.067Y12.62%8.00%$6.47$21.472021-07-22$0.00$26.45$48.01Premium_Income_Corporation
StrathbridgeSBN$5.65$0.034N7.22%6.00%$6.34$16.342021-07-22$15.00$6.42$13.88S_Split_Corp
StrathbridgeWFS$2.70$0.100N44.44%8.00%$2.68$12.682021-07-22$15.00$5.54$14.66World_Financial_Split_Corp.
QuadravestLFE$3.43$0.000Y0.00%0.00%N/A$13.972021-07-15$15.00N/A$16.93Canadian_Life_Companies_Split_
QuadravestDFN$8.09$0.100N14.83%8.00%N/A$17.462021-07-15$15.00N/A$32.92Dividend_15_Split_Corp
QuadravestYCM$5.10$0.000Y0.00%0.00%N/A$14.812021-07-15$15.00N/A$6.34NEW_Commerce_Split_Corp
QuadravestFFN$7.18$0.000Y0.00%0.00%N/A$16.612021-07-15$10.00N/A$23.50North_American_Financial_15_Sp
QuadravestPDV$7.30$0.056Y9.21%10.00%N/A$18.022021-07-15$0.00N/A$38.21Prime_Dividend_Corp
StrathbridgeTXT.UN$3.00$0.016N6.40%7.50%$3.59$16.142021-07-22$15.00$6.03$18.20Top_10_Split_Trust
QuadravestDF$6.23$0.100N19.26%8.00%N/A$15.432021-07-15$15.00N/A$36.78Dividend_15_Split_Corp_II
Harvest Portfolios GroupPRM$14.60$0.000N0.00%8.25%$15.00$25.002021-07-30$15.00$5.25$7.05Big_Pharma_Split_Corp
Brompton fundsPWI$9.98$0.066N8.02%8.00%$9.71$19.752021-07-29$15.00$0.13$0.19Sustainable_power_&_infrastruc

Split-Corp share information

Additional Split-Corp information is available here

  1. What is a split share fund by Brompton Funds on youtube.
  2. Split share corporations explained by Passive Income Investing on youtube.

Both of these videos are a good start for you to decide if this is the type of investment vechicle you are comfortable with.