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PIC.PR.A
PIC.A

Fund Overview

Overview

The Fund is a split share corporation designed to provide investors with exposure to five Canadian banks and utilizes Strathbridge’s proprietary SSO covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.

Rationale

The five Canadian banks have a history of strong earnings growth, which has resulted in increases in their dividend rates and share price appreciation.  The preferred shares are appropriate for an investor looking for a more secure investment than common equities with an attractive distribution.  The class A shares are appropriate for an investor seeking a leveraged play on the five banks included in the portfolio while earning attractive distributions.

Distributions

Preferred share distributions of $0.8625 per share per annum are paid quarterly for a yield of 5.75% on the $15.00 original issue price. Currently the Fund is paying distributions of $0.81276 per share per annum on the Class A shares on a quarterly basis.

Portfolio

The Fund invests in common shares of each of the following five Canadian banks while adjusting allocations to each bank over time depending on the Investment Manager’s outlook(Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Toronto-Dominion Bank).

Top 6 Holdings as of April 30, 2014
Holding Name % of NAV
CAN IMPERIAL BK OF COMMERCE      23.56%
BANK OF MONTREAL      22.29%
THE BANK OF NOVA SCOTIA      21.77%
TORONTO-DOMINION BANK      16.17%
ROYAL BANK OF CANADA      15.07%
CASH      0.86%
Sector Allocations

 

 

 Pricing
As of 07/24/2014
Current NAV for PIC.PR.A: $15.00
Market Price: $15.77
Last Traded: 07/28/2014 3:45pm
Current NAV for PIC.A: $9.01
Market Price: $8.39
Last Traded: 07/28/2014 3:56pm
View Historical NAV  
 Quick Facts
Inception Date: 10/30/1996
Total Assets As of 04/30/2014: $222.38 mm
Management Fee: 0.9%
 Distributions & Tax
Current Distributions for PIC.PR.A: $0.22
Current Yield: 5.47%
Current Distributions for PIC.A: $0.20
Current Yield: 9.69%
View Historical Distributions  
 News
7/3/2014
PIC: Announces Quarterly Distribution
6/13/2014
PIC: Announces Semi-Annual Results
4/3/2014
PIC: Announces Quarterly Distribution
1/3/2014
PIC: Announces Quarterly Distribution
12/19/2013
PIC: Announces Year End Results
View More News
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