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Canadian Chartered Banc Split Corp.
is a high quality portfolio composed of the largest
six Canadian Banks.
Portfolio Holdings::
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Canadian Banks |
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Bank of Montreal |
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Canadian Imperial
Bank of Commerce |
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National Bank |
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Royal Bank of
Canada |
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Bank of Nova Scotia |
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Toronto-Dominion Bank |
Shares held within the Portfolio are expected to range
between 5-30% in weight but may vary from time to time.
Objectives:
Preferred Shares:
(i) to provide holders of the Preferred Shares with fixed,
cumulative preferential monthly cash dividends at a rate
per annum equal to 7%;
and
(ii) on or about December 1, 2016 (termination date),
to pay the holders of the Preferred Shares the original issue price of
those shares.
Class A Shares:
(i) to provide holders of the Class A Shares with regular
monthly cash distributions targeted to be at a rate per
annum equal to 5%; and
(ii) on or about December 1, 2016 (termination date),
to pay the holders of Class A Shares at least the original issue price
of those shares.
Preferred Share
Highlights |
Class A Share
Highlights |
Attractive
monthly cumulative,
fixed dividends
Tax efficient dividends
Quality investment in Canadian Banks
Strong dividend coverage
Strong downside protection and asset coverage
P2 (low) DBRS rating
Non-callable except at windup |
Attractive
monthly targeted cash dividends
Tax efficient dividends
Quality investment in Canadian Banks
Leveraged exposure to Canadian Banks
Potential for capital appreciation and
dividend growth
Warrants provide additional upside
potential until they expire
Potential incremental returns achieved from
writing covered call options
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