Strathbridge Asset Management
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Premium Income Corporation

 

PIC.PR.A
PIC.A

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Fund Overview

Overview

The Fund is a split share corporation designed to provide investors with exposure to six Canadian banks and utilizes Strathbridge’s proprietary SSO covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility.

Rationale

The six 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 six 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 six 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, National Bank of Canada, Royal Bank of Canada, The Toronto-Dominion Bank).

Top 7 Holdings as of May 31, 2019
Holding Name % of NAV
The Toronto-Dominion Bank      21.9%
Bank of Montreal      19.0%
Cash and Short-Term Investments      18.2%
Royal Bank of Canada      18.2%
The Bank of Nova Scotia      13.9%
Canadian Imperial Bank of Commerce      9.0%
National Bank of Canada      4.2%
Sector Allocations

 

 

 Pricing
As of 07-18-2019
Current NAV for PIC.PR.A: $15.00
Market Price: $14.78
Last Traded: 07-19-2019
Current NAV for PIC.A: $5.24
Market Price: $6.49
Last Traded: 07-22-2019
View Historical NAV  
 Quick Facts
Inception Date: 10-30-1996
Total Assets As of 04-30-2019: $244.00 mm
Management Fee: 0.9%
Service Fee: N/A
 Distributions & Tax
Current Distributions for PIC.PR.A: $0.22
Current Yield: 5.84%
Current Distributions for PIC.A: $0.20
Current Yield: 12.52%
View Historical Distributions  
 News
2019-07-03
PIC: Declares Quarterly Distribution
2019-06-25
PIC: Announces Semi Annual Results
2019-06-11
PIC: Announces Closing of Overnight Offering
2019-06-04
PIC Announces Successful Treasury Offering
2019-06-03
PIC: Announces Overnight Offering
View More News