Strathbridge Asset Management
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Top 10 Canadian Financial Trust

 

TCT.UN

Fund Features

Objectives

The Fund’s investment objectives are:

  1. to provide Unitholders of the Fund with a stable stream of quarterly cash distributions in an amount targeted to be 7.5% per annum on the NAV of the Fund; and
  2. to return the NAV per Unit as of August 2, 2005 (on a post-consolidated basis) of $15.60 to Unitholders upon termination of the Fund.

Investment Strategy

The Fund will seek to achieve its objectives by investing in a portfolio consisting of securities of the six largest Canadian banks and the four largest Canadian life insurance companies. The Fund will generally invest not less than 5% and not more than 15% of the Fund’s assets in each of the companies in the Financial Portfolio. In addition, the Fund may write cash covered put options and may invest up to 10% of net assets to purchase call options, both in respect of securities in which the Fund is permitted to invest.

Option Strategy

The Fund employs Strathbridge’s proprietary SSO option strategy to generate additional returns above the distributions earned on its equity securities.

Click here for a detailed review of the Strathbridge Selective Overwriting (“SSO”) strategy.

Distributions

Distributions are calculated and paid each calendar quarter based on 7.5% per annum of the net asset value of the Fund and are generally classified as a return of capital for tax purposes.

Click here for a complete distribution history including the historical tax allocation.

Redemptions

The Fund is redeemable annually in December of each year at the option of the unitholder and monthly at a discount to market price.

Click to expand Redemption Details:

Redemption Deadlines
Units surrendered for redemption by a Unitholder at least five business days prior to the last day of a month (a “Valuation Date”) will be redeemed on such Valuation Date and the Unitholder will receive payment on or before the fifteenth day following such Valuation Date (the “Redemption Payment Date”). If a Unitholder makes such surrender after 5:00 p.m. (EST) on the fifth business day immediately preceding a Valuation Date, the Units will be redeemed on the Valuation Date in the following month. Redemption notices must be delivered to the Fund by an investor’s advisory form in sufficient time to meet the deadline.

Annual Redemption
Units are redeemed on the December Valuation Date in each year will be entitled to receive a redemption price per Unit equal to the NAV per Unit determined as of such Valuation Date

Monthly Redemption
For Unitholders whose Units are redeemed on any other Redemption Date, the redemption price per Unit will be equal to the lesser of:
  1. 95% of the Market Price. For such purposes, “Market Price” means the weighted average trading price of the Units on the principal stock exchange on which the Units are listed for the ten trading days immediately preceding the applicable Redemption Date, and
  2. 100% of the Closing Market Price of the Units on the applicable Redemption Date, minus an amount equal to the aggregate of all brokerage fees, commissions and other costs incurred by the Fund in connection with such payment, including, but not limited to, costs incurred in liquidating securities held in the Fund’s portfolio. For such purposes, the “Closing Market Price” means the closing price of the Units on the principal stock exchange on which the Units are listed or, if there was no trade on the relevant date, the average of the last bid and the last asking prices of the Units on the principal stock exchange on which the Units are listed.

Any unpaid distribution payable on or before the applicable Redemption Date in respect of Units tendered for redemption on such Redemption Date will also be paid on the applicable Redemption Payment Date.


Leverage

The Fund does not employ leverage.

Termination

There is no fixed termination date as units may be sold daily on the TSX or redeemed annually at net asset value per unit.

CUSIP ISIN

CUSIP – 89054A105
ISIN - CA 89054A1053

Eligibility

RRSPs, DPSPs, RRIFs, RESPs and TFSAs

Issuer Bid

The Fund may purchase up to 10% of its outstanding units at prices up to net asset value per unit.

Management Fees

The Fund pays a management fee of 1.10% of net asset value annually to Strathbridge Asset Management for acting as the Manager and the Investment Manager.

Service Fee

A service fee of 0.30% of NAV per unit per annum is paid quarterly to Investment Advisors.

MER

The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value.

Inception Date

02/23/2000 (Restructured as TCT on August 2, 2005)

Manager

Strathbridge Asset Management

 

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