Strathbridge Asset Management

Premium Income Corporation

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.

 

Objectives

The Fund’s investment objectives are:

  • to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.215625 per Preferred share representing a yield on the issue price of the Preferred shares of 5.75% per annum; and
  • to provide holders of Class A shares with quarterly cash distributions targeted to be 8.0% of NAV per annum; and
  • to return the original issue price to holders of both preferred share and Class A shares upon wind-up of the Fund.

 

Name Ticker Current Yield Recent
Distributions
Most Recent
Distribution Date
Distributions
Since Inception
Premium Income Corporation PIC.PR.A 6.69% $0.22 2020-07-31 $20.70
Premium Income Corporation PIC.A 11.90% $0.10 2020-07-31 $25.82

Top Holdings Top 7 Holdings as of July 31, 2020

Holding Name % of Fund
Canadian Imperial Bank of Commerce 20.2%
Royal Bank of Canada 18.8%
The Toronto-Dominion Bank 15.3%
Bank Of Montreal 15.1%
The Bank Of Nova Scotia 13.2%
National Bank of Canada 10.3%
Cash and Short-Term 7.1%
Sector Allocations

Historic Net Asset Value Per Unit

The Fund calculates the net asset value (“NAV”) per share on a weekly basis as of the close of business on Thursday and generally posts the amount at the close of business on Friday. If the last day of a month falls during the week on a day other than Thursday, the NAVs per share are calculated as of the last day of the month for that week and the regular weekly calculation on Thursdays is resumed the following week.

 

Note:

Class A share consolidation - The Class A shares were consolidated on November 1, 2010 on the basis of 0.738208641 new share for each old share resulting in a higher net asset value per share.

 

Date:   Basic NAV Per
Class A Share
Diluted NAV
Per Class A Share
NAV Per
Preferred Share
2020-09-17    $1.76  N/A  $15.00 
2020-09-10    $1.81  N/A  $15.00 
2020-08-31    $2.13  N/A  $15.00 
2020-08-27    $2.33  N/A  $15.00 
2020-08-20    $1.40  N/A  $15.00 
2020-08-13    $1.49  N/A  $15.00 
2020-08-06    $0.95  N/A  $15.00 
2020-07-31    $0.72  N/A  $15.00 
2020-07-23    $0.87  N/A  $15.00 
2020-07-16    $0.97  N/A  $15.00 
2020-07-09    $0.60  N/A  $15.00 
2020-06-30    $0.82  N/A  $15.00 
2020-06-25    $0.93  N/A  $15.00 
2020-06-18    $1.16  N/A  $15.00 
2020-06-11    $0.77  N/A  $15.00 
2020-06-04    $1.46  N/A  $15.00 
2020-05-29    $0.65  N/A  $15.00 
2020-05-21    $0.00  N/A  $14.96 
2020-05-14    $0.00  N/A  $14.67 
2020-05-07    $0.07  N/A  $15.00 
2020-04-30    $0.41  N/A  $15.00 
2020-04-23    $0.00  N/A  $14.69 
2020-04-16    $0.00  N/A  $14.63 
2020-04-09    $1.29  N/A  $15.00 
2020-03-31    $0.84  N/A  $15.00 
2020-03-26    $0.79  N/A  $15.00 
2020-03-19    $0.00  N/A  $14.17 
2020-03-13    $1.14  N/A  $15.00 
2020-03-05    $3.68  N/A  $15.00 
2020-02-28    $4.05  N/A  $15.00 
2020-02-20    $5.57  N/A  $15.00 
2020-02-13    $5.58  N/A  $15.00 
2020-02-06    $5.57  N/A  $15.00 
2020-01-31    $5.15  N/A  $15.00 
2020-01-23    $5.45  N/A  $15.00 
2020-01-16    $5.31  N/A  $15.00 
2020-01-09    $5.51  N/A  $15.00 

Class A Share Distribution Amount: Pursuant to the consolidation of Class A shares announced October 29, 2010. The quarterly distribution effective after October 30, 2010 will adjusted by the consolidation ratio. The new quarterly distribution will be $0.20319 per Class A share.

Class A Share Floating Distribution NAV Threshold: Shareholders of the Class A shares are advised that pursuant to the consolidation of the Class A shares on November 1, 2010, the Unit NAV threshold of $22.50 above which the distribution on the Class A shares would float and thereafter be based on 8.0% of the Class A net asset value per unit, has been adjusted to reflect the consolidation. The Class A shares were consolidated on the basis of 0.738208641 new shares for each old share resulting in a higher net asset value per share. The NAV threshold has therefore been increase to $25.00 to reflect the approximate consolidation ratio. Once the NAV per Unit reaches this threshold, the distribution on the Class A shares will float and be based on 8.0% of the net asset value per Class A share.

Note:

For the 2007 taxation year, to the extent that any portion of the distributions are ordinary taxable dividends and not capital gains dividends, they will be eligible dividends.

 

Tax and Distribution Summary - PIC.PR.A Year Selection:  

 

  Regular Distribution Special Distribution Total Distribution Capital Gains
per Unit
Div. Income per Unit Return of Capital Other Income Foreign Dividend Income Witholding Taxes Paid
July 2020 0.215625 0.000000 0.215625 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
April 2020 0.215625 0.000000 0.215625 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
January 2020 0.215625 0.000000 0.215625 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
Total for 2020     $0.646875 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000
Percent (%)       0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Distributions
to Date
    $20.696332            

 

Tax and Distribution Summary - PIC.A

 

  Regular Distribution Special Distribution Total Distribution Capital Gains
per Unit
Div. Income per Unit Return of Capital Other Income Foreign Dividend Income Witholding Taxes Paid
July 2020 0.100000 0.000000 0.100000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
April 2020 0.100000 0.000000 0.100000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
January 2020 0.203190 0.000000 0.203190 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
Total for 2020     $0.403190 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000
Percent (%)       0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Distributions
to Date
    $25.818030            

 

Portfolio Manager Updates

 

PM Updates - July 2020

As of July 31, 2020, the Net Asset Value (“NAV”) of the Fund was $15.72 per unit compared to $15.41 per unit on April 30, 2020. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2020 at $3.35 and $12.43 respectively which, when combined, represent a $0.06 premium to the Net Asset Value. Distributions totaling $0.10 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

Equity markets continue to rally during the fiscal third quarter ending July 31, 2020 as investors believe that central banks will continue with unprecedented stimulus and economies started to reopen after shutting down due to the COVID-19 (Coronavirus) pandemic. The S&P/TSX Composite Index rose 10.3% during the period to bring the year-to-date total return to -3.3%.

The Canadian banks also rose during the quarter with a total return of 6.2% for the S&P/TSX Diversified Banks Sub Index, but continued to underperform the broader market as investors weighed the expected credit costs that will result from the pandemic as well as lower net interest margins with stronger trading revenues. The performance of the six banks within the portfolio varied with the Canadian Imperial Bank of Commerce (“CIBC”) leading the way with a total return of 14.2% while The Bank of Nova Scotia (“BNS”) lagged with a relatively flat total return of 0.2%. For the first time in years, none of the Canadian banks announced a dividend increase in the quarter in order to preserve capital ratios and bolster up their loan loss provisions.

Volatility levels continued to decline as markets have recovered significantly from the low in March. However, volatility for the Canadian banks remained elevated relative to levels experienced over the past few years. As a result, the call writing activity remained high as the Fund on average had 21.3% of the portfolio written during the quarter compared to 21% the previous quarter and 12.5% the previous year.

PM Updates - April 2020

As of April 30, 2020, the Net Asset Value (“NAV”) of the Fund was $15.41per unit compared to $20.15 per unit on January 31, 2020. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2020 at $4.05 and $11.62 respectively which, when combined, represent a 1.7% premium to the Net Asset Value. Distributions totaling $0.10 per share were paid to the Class A shareholders and $0.215625 per share were paid to the Preferred shareholders during the quarter.

After hitting all-time highs in the third week of February on the anticipation of continued economic strength accompanied by central banks easing monetary policy, the S&P/TSX Composite Index declined over 37% to the low reached on March 23rd as global markets and economies were gripped by the pandemic COVID-19 (Coronavirus). Central banks and governments around the globe responded with unprecedented monetary and fiscal policies to prop up economies and keep funding markets open, and markets responded with the S&P/TSX Composite rallying over 31% to end the quarter.

The total return for the S&P/TSX Diversified Banks Sub Index for the quarter was negative 20.7%, significantly underperforming the broader S&P/TSX Composite Index which generated a total return of negative 13.9% over the same period. All six banks within the portfolio were down considerably during the quarter, with the Royal Bank of Canada (“RBC”) outperforming the other banks but was still down 17.1%, while the Bank of Montreal (“BMO”) lagged the group with a total return of negative 28.8%. The Canadian Imperial Bank of Commerce, RBC and The Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 1.4%, 2.9% and 6.8% respectively.

Volatility levels experienced in March were truly historic across all asset classes and specifically for the Canadian banks as markets sold off but declined somewhat in April as markets recovered. As a result, the call writing activity picked up as the Fund on average had 21% of the portfolio written during the quarter compared to 3.9% the previous quarter. The Fund ended the period with 37.1 percent of the portfolio written.

PM Updates - January 2020

As of January 31, 2020, the Net Asset Value (“NAV”) of the Fund was $20.15 versus $20.70 per unit on October 31, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2020 at $6.32 and $14.70 respectively which, when combined, represent a 4.3% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The total return for the Canadian banks during the period was relatively flat with the S&P/TSX Diversified Banks Sub Index down 0.5%, significantly underperforming the broader S&P/TSX Composite Index which generated a total return of 5.9% over the same period.

Only two of the six banks within the portfolio generated a positive total return during the quarter. National Bank of Canada (“NA”) led the way up 9.0%, followed by the Bank of Montreal (“BMO”) which was up 4.6%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of -3.1% during the period. BMO and NA each announced a dividend increase in the quarter, increasing it by 2.9% and 4.4% respectively.

Volatility levels for the Canadian banks remained at the low end of the range witnessed over the past few years as global equity markets have started off 2020 strong, with many indices at or near all-time highs. The Fund did selectively write some covered-call writing options during the period with an average of 3.9% of the portfolio subject to covered-calls vs. a 7.2% in the previous quarter.

PM Updates - October 2019

As of October 31, 2019, the Net Asset Value (“NAV”) of the Fund was $20.70 versus $20.38 per unit on July 31, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2019 at $6.30 and $14.41 respectively which, when combined, represents a $0.01 premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 3.0% on a total return basis, outperforming the broader S&P/TSX Composite Index which generated a total return of 1.2% over the same period.
The six banks within the portfolio generated an average total return of 4.5% during the period with two of the six banks declining. The Canadian Imperial Bank of Commerce (“CIBC”) led the way with a total return of 9.6%, while, The Toronto-Dominion Bank (“TD”) lagged the group with a total return of -1.5% during the period.

The Bank of Nova Scotia, CIBC and Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.4%, 2.9% and 2.9% respectively.

Volatility levels for the Canadian banks this quarter remained at the lower end of the range of the past few years as many global equity markets traded at or near all-time highs during the period. The Manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy during the period with an average of 7.2% of the portfolio subject to covered calls vs. a 12.5% in the previous quarter.

PM Updates - July 2019

As of July 31, 2019, the Net Asset Value (“NAV”) of the Fund was $20.38 versus $21.25 per unit on April 30, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2019 at $6.50 and $14.77 respectively which, when combined, represents a 4.4% premium to the Net Asset Value. Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks declined during the period with the S&P/TSX Diversified Banks Sub Index down 1.8% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of negative 0.3% over the same period.

The six banks within the portfolio generated an average total return of negative 2.3% during the period with five of the six banks declining. The Toronto-Dominion Banks (“TD”) led the way with a total return of 1.9%, while, the Canadian Imperial Bank of Commerce (“CIBC”) lagged the group with a total return of -6.7% during the period.

The Bank of Montreal and National Bank of Canada each announced a dividend increase in the quarter, increasing it by 3% and 4.6% respectively.

Volatility levels for the Canadian banks declined in the quarter as many global equity markets hit new all-time highs during the period. The Manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy during the period with an average of 12.5% of the portfolio subject to covered calls vs. a 20.3% in the previous quarter.

PM Updates - April 2019

As of April 30, 2019, the Net Asset Value (“NAV”) of the Fund was $21.25 versus $20.87 per unit on January 31, 2019. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2019 at $6.84 and $14.69 respectively which, when combined, represents a 1.3% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 5.1% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of 7.5% over the same period.

Five of the six banks within the portfolio generated a positive total return during the quarter with the Bank of Montreal (“BMO”) leading the way with a total return of 11.1%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group and was the only bank to be down in the quarter with a total return of -0.2% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 2.4%, 2.9%, 4.1% and 10.4% respectively.

Volatility levels for the Canadian banks declined in the quarter as global equity markets continued to recover following the significant sell off in the December 2018. The Manager was opportunistic with the Strathbridge Selective Overwriting (“SSO”) strategy during the period with an average of 20.3% of the portfolio subject to covered-calls vs. a 11.3% in the previous quarter.

PM Updates - January 2019

As of January 31, 2019, the Net Asset Value (“NAV”) of the Fund was $20.87 versus $20.81 per unit on October 31, 2018. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2019 at $6.43 and $14.53 respectively which, when combined, represent a $0.09 discount to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

Due to strong performance in January, the Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 3.3% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of 4.3% over the same period.

Four of the six banks within the portfolio rose during the quarter with the Bank of Nova Scotia (“BNS”) leading the way with a total return of 7.2%. Meanwhile, the Bank of Montreal (“BMO”) lagged the group with a total return of -1.3% during the period.

The National Bank of Canada ("NA") was the only Canadian bank that announced a dividend increase in the quarter, increasing it by 4.8%.

Equity volatility levels for the Canadian banks rose in December as global equity markets sold off in concert due to concerns regarding tighter monetary policy, trade wars and soaring valuations. The Fund became more active with its covered-call writing strategy during the period with an average of 11.3% of the portfolio subject to covered-calls vs. a 6.1% in the previous quarter.

On January 14, 2019, Premium Income Corporation announced that it was undertaking an overnight treasury offering of Preferred and Class A shares at a price of $14.60 and $6.40 respectively. On January 15, 2019, the Fund announced a successful offering of 694,000 Preferred Shares and 694,000 Class A shares for gross proceeds of $14.6 million, with the offering closing on January 22, 2019.

PM Updates - October 2018

As of October 31, 2018, the Net Asset Value (“NAV”) of the Fund was $20.81 versus $22.25 per unit on July 31, 2018. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2018 at $6.35 and $15.00 respectively which, when combined, represent a 2.6% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks declined during the period with the S&P/TSX Diversified Banks Sub Index down 4.8% on a total return basis, outperforming the broader S&P/TSX Composite Index which generated a total return of negative 7.9% over the same period.

All of the six banks within the portfolio declined during the quarter with Canadian Imperial Bank of Commerce (“CIBC”), leading the way with a total return of negative 3.2%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of negative 7.3% during the period, with over $7 billion of acquisitions announced this year likely weighing on the stock.

CIBC and the Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.2% and 4.3% respectively.

Volatility levels for the Canadian banks remained at the low levels witnessed over the past few years in August and September before spiking in October as global equity markets sold off in concert due to concerns regarding trade wars, mid-term elections in the U.S. as well as decelerating global growth. The Fund became more active with its covered-call writing strategy in October with a a high of 26% of the portfolio subject to covered-calls vs. a 10% high in the previous quarter.

On October 25, 2018, Premium Income Corporation announced that it was undertaking an overnight treasury offering of Preferred and Class A shares at a price of $15.00 and $6.60 respectively. On October 26, 2018, the Fund announced a successful offering of 795,000 Preferred Shares and 795,000 Class A shares for gross proceeds of $17.2 million, with the offering closing on November 2, 2018.

PM Updates - July 2018

As of July 31, 2018, the Net Asset Value (“NAV”) of the Fund was $22.25 versus $21.77 per unit on April 30, 2018. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2018 at $7.72 and $15.19 respectively which, when combined, represent a 3.0% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks rose during the period with the S&P/TSX Diversified Banks Sub Index up 5.1% on a total return basis, underperforming the broader S&P/TSX Composite Index which generated a total return of 6.1% over the same period.

Five of the six banks within the portfolio rose during the quarter with The Toronto-Dominion Bank (“TD”), leading the way with a total return of 8.0%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of -1.2% during the period, with over $7 billion of acquisitions announced this year likely weighing on the stock.

The Bank of Montreal and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.2% and 3.3% respectively.

Volatility levels for the Canadian banks were at the low end of the range of the past few years so the Fund was less active with its covered-call writing strategy during the quarter with an average 5.9% of the portfolio subject to covered-calls vs. 11.6% in the previous quarter. The Fund also purchased some call options during the period that amounted to 0.25% of Fund assets.

PM Updates - April 2018

As of April 30, 2018, the Net Asset Value (“NAV”) of the Fund was $21.77 versus $23.41 per unit on January 31, 2018. The Fund’s class A shares (PIC.A) closed on April 30, 2018 at $7.43 while the Preferred shares (PIC.PR.A) closed at $15.21. Combined, this represents a 4.09% premium to the NAV of the Fund.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks declined during the period with the S&P/TSX Diversified Banks Sub Index down 4.2% on a total return basis, underperforming the broader S&P/TSX Composite Index which fell 1.4% over the same period.

Each of the banks within the portfolio declined during the quarter with The Bank of Nova Scotia (“BNS”), which lagged the group last quarter, leading the way with a total return of -2.4%. Meanwhile, the Canadian Imperial Bank of Commerce (“CM”) which led the group last quarter, lagged the group with a total return of -7.1% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and the Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 3.8%, 2.3%, 3.3% and 11.7% respectively.

Volatility levels for the Canadian banks picked up during the period along with broader market volatility due to concerns regarding trade policy, rising interest rates and market valuations. Although still quite low on an absolute basis, the covered-call writing did pick up during the quarter with an average 11.6% of the portfolio subject to covered calls vs. 4.2% in the previous quarter.

PM Updates - January 2018

As of January 31, 2018, the Net Asset Value (“NAV”) of the Fund was $23.41 versus $23.18 per unit on October 31, 2017. The Fund’s class A shares (PIC.A) closed on January 31, 2018 at $8.03 while the Preferred shares (PIC.PR.A) closed at $15.20. Combined, this represents a 0.8% discount to the NAV of the Fund.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks generated strong performance during the fourth quarter with the S&P/TSX Diversified Banks Sub Index up 3.4% on a total return basis, outperforming the broader S&P/TSX Composite Index which rose 0.2% over the same period.

The banks within the portfolio produced varying returns during the quarter with the Canadian Imperial Bank of Commerce (“CIBC”) leading the way with a total return of 8.5%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged the group with a total return of -0.9% during the period.

The Bank of Montreal, Canadian Imperial Bank of Commerce and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.3%, 2.3% and 3.4% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 4.2% of the portfolio subject to covered calls vs. 2.8% in the previous quarter. Similar to the previous quarter, due to the low level of volatility and the manager’s favourable outlook for the banks, the Fund opportunistically purchased some call options on Royal Bank of Canada and The Toronto-Dominion Bank during the quarter that ended the period totaling 0.46% of NAV.

PM Updates - October 2017

As of October 31, 2017, the Net Asset Value (“NAV”) of the Fund was $23.18 versus $21.61 per unit on July 31, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2017 at $7.73 and $15.20 respectively which, when combined, represent a 1.1% discount to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks generated strong performance during the fourth quarter with the S&P/TSX Diversified Banks Sub Index up 9.9% on a total return basis, outperforming the broader S&P/TSX Composite Index which rose 6.6% over the same period.

The banks within the portfolio produced varying returns during the quarter with The Toronto-Dominion Bank (“TD”) strongly outperforming the group with a total return of 15.1%. Meanwhile, the Bank of Montreal (“BMO”) lagged the group for the second period in a row with a total return of 5.5% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce and the Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 3.9%, 2.4% and 4.6% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 2.8% of the portfolio subject to covered calls vs. 0.7% in the previous quarter. Also, due to the favourable outlook for the banks for the fourth quarter, the Fund opportunistically purchased some call options on both the Bank of Nova Scotia and the Royal Bank of Canada which helped enhance the return of the Fund during the period.

PM Updates - July 2017

As of July 31, 2017, the Net Asset Value (“NAV”) of the Fund was $21.61 versus $21.93 per unit on April 30, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2017 at $6.85 and $15.11 respectively which, when combined, represent a 1.6% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks in general were flat during the third quarter with the S&P/TSX Diversified Banks Sub Index up 1.1% on a total return basis when adding back the dividends paid by the banks during the period.

The banks within the portfolio produced varying returns during the quarter with National Bank of Canada (“NA”) strongly outperforming the group with a total return of 7.0%. Meanwhile, the Bank of Montreal (“BMO”) lagged the group with a negative total return of 1.2% during the period.

The Bank of Montreal and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.3% and 3.6% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 0.7% of the portfolio subject to covered-calls vs. 7.2% in the previous quarter.

PM Updates - April 2017

As of April 30, 2017, the Net Asset Value (“NAV”) of the Fund was $21.93 versus $22.66 per unit on January 31, 2017. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2017 at $6.72 and $15.29 respectively which, when combined, represent a 0.4% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks continued their strong rally from last year into the second quarter with the S&P/TSX Diversified Banks Sub Index making an all-time high on February 23rd. Since then, the banks have corrected 5.8% to the end of April, 2017 due to a flattening yield curve and credit concerns mounting over rising home prices in Toronto and Vancouver.

The banks within the portfolio produced varying returns during the quarter with the Royal Bank of Canada (“RBC”) slightly outperforming the group with a total return of 0.8%. Meanwhile, the Toronto-Dominion Bank (“TD”) lagged the group with a negative total return of 3.8% during the period.

The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank each announced a dividend increase in the quarter, increasing it by 2.7%, 2.4%, 4.8% and 9.1% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years so the Fund continued to be less active with its covered-call writing strategy during the quarter with an average 7.2% of the portfolio subject to covered-calls vs. 4.4% in the previous quarter.

PM Updates - January 2017

As of January 31, 2017, the Net Asset Value (“NAV”) of the Fund was $22.66 versus $21.00 per unit on October 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2017 at $7.03 and $15.29 respectively which, when combined, represent a 1.5% discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks were up very strongly during the period, with an average total return of 12.2% for the Big 5 banks, which significantly outperformed the broader S&P/TSX Composite Index’s total return of 4.8%. Markets reacted strongly to the election of Donald Trump as the President of the United States and expectations that more favourable fiscal and tax policies along with less regulation will provide growth to the economy. The banks reported fourth quarter earnings during the period with Industry EPS growth of 4.8% year-over-year, aided mostly by stronger trading revenue, better than expected loan growth as well as positive operating leverage.

The banks within the portfolio produced varying returns during the quarter with the National Bank of Canada outperforming the group with a total return of 18.5%. Meanwhile, the Bank of Nova Scotia lagged the group but still posted a total return of 8.9% during the period.

The Bank of Montreal, Canadian Imperial Bank of Commerce and the National Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.3%, 1.8% and 2.5% respectively.

Volatility levels for the Canadian banks remained at the low end of the range for the past few years so the Fund was less active with its covered-call writing strategy during the quarter with an average 4.4% of the portfolio subject to covered-calls.

PM Updates - October 2016

As of October 31, 2016, the Net Asset Value (“NAV”) of the Fund was $21.00 versus $20.41 per unit on July 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2016 at $5.81 and $15.13 respectively which, when combined, represent a 0.3% discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks were up strongly during the period, with an average price return of 5.9% for the Big 5 banks, which significantly outperformed the broader S&P/TSX Composite return of 2.1%. The banks reported third quarter earnings during the period that mostly beat street estimates, aided mostly by stronger trading and capital market related revenues as well as lower provisions for credit losses (PCL).

The banks within the portfolio produced varying returns during the quarter with the Bank of Nova Scotia outperforming the group with a total return of 9.8%. Meanwhile, the Bank of Montreal lagged the group but still posted a total return of 3.0% during the period.

The Bank of Nova Scotia and the Royal Bank of Canada each announced a dividend increase in the quarter, increasing it by 2.8% and 2.5% respectively.

Volatility levels for the Canadian banks remained at the low end of the range of the past few years, so the Fund was less active with its covered-call writing strategy during the quarter with an average 4.6% of the portfolio subject to covered-calls. The Fund ended the period with 5.5% of the portfolio subject to covered-calls.

PM Updates - July 2016

As of July 31, 2016, the Net Asset Value (“NAV”) of the Fund was $20.41 versus $20.80 per unit on April 30, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2016 at $5.55 and $15.00 respectively which, when combined, represent a 0.7% premium to the underlying NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks were up slightly during the period, with a price return of 1.3%, which trailed the broader S&P/TSX Composite with a 4.5% increase over the same period. Aided mostly by lower provision for credit losses (“PCL”) and lower expenses, the banks reported second quarter earnings during the period that mostly met street estimates. Conversely, revenues were weaker than expected, particularly net interest income.

The banks within the portfolio produced varying returns during the quarter with the Bank of Montreal (BMO) outperforming the group with a total return of 3.4%. Meanwhile, the Canadian Imperial Bank of Commerce (CM) lagged behind its peers, down 0.9% during the period.

The Bank of Nova Scotia (BNS) and the Royal Bank of Canada (RY) each announced a dividend increase in the quarter, increasing it by 2.8% and 2.5% respectively.

The Fund did utilize its covered-call writing strategy slightly during the quarter with, on average, 8.9% of the portfolio subject to covered calls. The Fund ended the quarter with 1.0% of the portfolio subject to covered calls.

PM Updates - April 2016

As of April 30, 2016, the Net Asset Value (“NAV”) of the Fund was $20.80 versus $19.70 per unit on January 31, 2016. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 29, 2016 at $5.90 and $14.88 respectively which, when combined, represent a 2 cent discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks (the “Banks”) rallies strongly during the period, generating a total return of 10.0%, slightly outperforming the broader S&P/TSX Composite which increased 9.7% over the same period. The Banks reported first quarter earnings during the period that exceeded street estimates, aided by higher trading revenues and strong fee income. Higher impaired loan formations were reported across the group with most of the increase due to energy provisions but amounts remained modest.

The Banks within the portfolio produced varying returns during the quarter with the Bank of Nova Scotia (BNS) outperforming the group with a total return of 16.0%. Meanwhile, the Toronto-Dominion Bank (TD) lagged, but still had a total return of 6.4% during the period.

BNS, CIBC, RBC and TD each announced a dividend increase in the quarter, increasing it by 2.9%, 2.6%, 2.5% and 7.8% respectively. This was the sixth quarter in a row that CIBC increased its dividend rate.

The Fund did utilize its covered-call writing strategy during the quarter with an average 13.9% of the portfolio subject to covered-calls. The Fund ended the quarter with none of the portfolio subject to covered-calls.

PM Updates - January 2016

As of January 31, 2016, the Net Asset Value (“NAV”) of the Fund was $19.70 versus $20.79 per unit on October 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2016 at $5.05 and $14.96 respectively which, when combined, represent a 1.6% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks traded sideways for most of November and December 2015 before declining significantly (over 9%) along with the broader market in the first 3 weeks of January 2016 on concerns that a global recession and possibly deflation were around the corner. And then, similar to what we have witnessed over the past year or so, markets bounced back with a vengeance in the final week of January with Canadian banks ending the period down less than 3%. The banks reported fourth quarter earnings during the period which met or exceeded street estimates, but did so with questionable quality as there were some one-time tax gains, gain from pensions as well as lower than expected provisions for loan losses, especially for those related to the Energy sector.

The banks within the portfolio produced varying returns during the quarter with the Bank of Montreal outperforming the group with a total return of 0.04%. Meanwhile, the Canadian Imperial Bank of Commerce (“CIBC”) lagged behind its peers, declining 8.1% during the period after outperforming in the previous 2 quarters.

Only CIBC announced a dividend increase in the quarter, increasing it by 2.7%. This was the fifth quarter in a row that CIBC increased its dividend rate.

The Fund did utilize its covered-call writing strategy slightly during the quarter with an average 6.2% of the portfolio subject to covered calls. The Fund ended the quarter with none of the portfolio subject to covered calls.

Due to our expectations that Canadian bank earnings growth will continue to slow in 2016 and our concerns regarding loan loss provisions, especially for those related to the Energy industry, the Fund’s cash position was increased in the first quarter to 13.7% vs. 6.5% at the end of the previous quarter.

PM Updates - October 2015

As of October 31, 2015, the Net Asset Value (“NAV”) of the Fund was $20.79 versus $20.94 per unit on July 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 30, 2015 at $6.16 and $15.14 respectively which, when combined, represent a 2.5% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks demonstrated resilient performance in the fourth quarter with the S&P/TSX Diversified Banks Total Return Index clawing its way to a total return of 1.1% after declining almost 9% in the first three weeks of August along with the broader market swoon. The banks continued to show steady earnings supported by stable domestic banking revenues, a greater contribution from U.S. and International banking along with cyclically low credit charges.

The banks within the portfolio produced varying returns during the quarter with the Canadian Imperial Bank of Commerce (“CIBC”) outperforming the group with a total return of 8.6%. Meanwhile, the Bank of Nova Scotia (“BNS”) lagged behind its peers, declining 3.1% during the period.

BNS, CIBC and the Royal Bank of Canada (“RBC”) each announced a dividend increase in the quarter, increasing it by 2.9%, 2.7% and 2.6% respectively. This was the fourth quarter in a row that CIBC increased its dividend rate.

The Fund did increase its covered-call writing slightly during the quarter with an average 10.0% of the portfolio subject to covered calls vs. 10.4% the previous quarter. The Fund ended October with 4.1% of the portfolio subject to covered calls.

The Fund maintained its invested position for most of the period and ended the fourth quarter with a cash position of 6.5% vs. 6.7% at the end of the previous quarter.

PM Updates - July 2015

As of July 31, 2015, the Net Asset Value (“NAV”) of the Fund was $20.94 versus $22.31 per unit on April 30, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2015 at $6.31 and $15.20 respectively which, when combined, represent a 2.7% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks continued their see-saw performance during the third quarter ending July 31, 2015. After declining over 10% in the first quarter, followed by a bounce back of 11.1% in the second quarter, the banks rolled back down with the S&P/TSX Diversified Banks Total Return Index declining 3.9% during the period. Although the banks for the most part reported better than expected earnings during the quarter, challenging growth fundamentals as well as ongoing uncertainty associated with weak energy prices have provided some headwinds for the group.

All the banks within the portfolio declined during the quarter with the Bank of Montreal declining the most with a negative return of 6.3%. Meanwhile, the Canadian Imperial Bank of Commerce (“CIBC”) outperformed during the period, but still declined 2.4%.

Both the CIBC and National Bank of Canada announced a dividend increase in the quarter, increasing it by 2.8% and 4% respectively. This was the third quarter in a row that CIBC increased its dividend rate.

The Fund maintained its covered-call writing during the quarter with, on the average, 10.4% of the portfolio subject to covered-calls vs. 11.9% the previous quarter. The Fund ended July with 14.4% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the third quarter with a cash position of 6.7% vs. 5.0% at the end of the previous quarter.

PM Updates - April 2015

As of April 30, 2015, the Net Asset Value (“NAV”) of the Fund was $22.31 versus $20.74 per unit on January 31, 2015. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2015 at $7.28 and $15.36 respectively which, when combined, represent a 1.5% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

After declining over 10% the previous quarter, the Canadian banks bounced back with the S&P/TSX Diversified Banks Total Return Index up 11.1% during the period vs. the broader TSX Composite Index up 4.5%. After reporting weaker than expected fourth quarter earnings, Canadian Banks surprised to the upside by reporting better than expected first quarter earnings that were helped by stronger trading revenues and lower provisions for credit losses.

All the banks within the portfolio advanced during the quarter with the Royal Bank of Canada (“RBC”) leading the way up 12.8%. Meanwhile, Bank of Montreal (“BMO”) lagged the group during the period, but still generated a strong return of 9.0%. The Fund also now holds National Bank of Canada, which it is now permitted to purchase after securityholders approved a proposal to change the investment restrictions of the Fund at the end of 2014.

Four of the six banks announced a dividend increase in the quarter with The Toronto-Dominion Bank increasing their dividend by 8.5%. The Canadian banks continue to perform well on an operating basis despite slowing retail loan growth and low net interest margin pressures.

The Fund did increase its covered-call writing during the quarter with an average 11.9% of the portfolio subject to covered-calls vs. 3.4% the previous quarter. The Fund ended April with 6.6% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 5.0% vs. 0.5 % at the end of the previous quarter.

PM Updates - January 2015

As of January 31, 2015, the Net Asset Value (“NAV”) per Unit of the Fund was $20.74 versus $23.60 on October 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 30, 2014 at $7.15 and $15.41 respectively which, when combined, represent a 8.8% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The Canadian banks continued to decline this quarter after reaching a new high during the previous quarter on September 18, 2014. The S&P/TSX Diversified Banks Total Return Index declined 10.02% during the period on weaker than expected 4th quarter earnings as well as concerns regarding the banks’ loan and capital markets exposure to Energy companies. All five banks declined during the quarter with the Canadian Imperial Bank of Commerce (“CIBC”) leading the downtrend generating a total return of negative 13.42%. Meanwhile, The Toronto-Dominion Bank outperformed during the period, but still generated a negative return of 8.0%.

Two of the five banks announced dividend increases in the quarter with the Bank of Montreal and CIBC increasing their dividend by 2.6% and 3.0% respectively. The Canadian banks continue to perform well on an operating basis despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks moved higher for most of the quarter coinciding with the weak performance for the group. The S&P/TSX Diversified Banks Index had 2 periods during the quarter where the index declined by more than 9%, increasing the implied volatility for the group. The Fund did some covered-call writing with an average 3.4% of the portfolio subject to covered-calls vs. 2.7% in the previous quarter. The Fund ended the quarter with nil% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the first quarter with a cash position of 0.5% vs. 0.8 % at the end of the previous quarter.

The Canadian banks profitability is likely to grow at a slower pace 2015 due to slower consumer loan growth and narrow net interest margins. However, in the context of low interest rates, the valuation of companies within the portfolio remains at attractive levels when measured by price to earnings ratios or current dividend yields. The Canadian Banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks due to their strong capital ratios.

PM Updates - October 2014

As of October 31, 2014, the Net Asset Value (“NAV”) of the Fund was $23.60 versus $24.26 per unit on July 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2014 at $8.30 and $15.60 respectively which, when combined, represent a 1.3% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

As a reminder, as per the Management Information Circular dated August 20, 2010, the Fund will change the quarterly distribution for the Class A shares to a floating rate distribution calculated as approximately 8% per annum of the NAV of the Class A Shares. Due to consolidation of the Class A shares on November 1, 2010 on the basis of 0.738208641 new shares for each old share, the NAV threshold per unit for the Class A share floating distribution is $25.00.

On October 23, 2014, the Fund announced a follow-on offering on offering of preferred shares and class A shares. On November 10, 2014, the Fund announced it has completed a treasury offering of 900,000 preferred shares at a price of $15.60 per shares and 900,000 class A shares at a price of $8.92 per shares for gross proceeds of $22.1 million.

After reaching a new high on September 18th, the S&P/TSX Diversified Banks Total Return Index declined during the period and ended October 31, 2014 at 4,610.92 vs. 4,649.67 on July 31, 2014. Three of the five banks generated a positive total return during the quarter with the Canadian Imperial Bank of Commerce leading the group generating a total return of 2.7%. Meanwhile, The Bank of Nova Scotia lagged during the period, down 5.8% on concerns that slowing growth in Latin America would have a negative effect on its operations there.

Two of the five banks announced dividend increases in the quarter with the Bank of Nova Scotia and the Royal Bank of Canada increasing their dividend by 3.1% and 5.6% respectively. The Canadian banks continue to perform well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks spiked above 20 for a brief period in mid-October as the banks along with many global equity markets corrected over 10% from their highs in September. However, volatility quickly retraced as the banks bounced back over 6% from the intra-day low reached on October 16, 2014.

The Fund was fairly inactive in its covered-call writing with an average 3.1% of the portfolio subject to covered-calls vs. 2.7% in the prior quarter. The Fund ended the quarter with nil% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the fourth quarter with a cash position of 0.8%, which is unchanged compared to the prior quarter.

The Canadian banks are expected to improve profitability in 2015 due to lower loan losses and better capital market related revenues. Consequently, Canadian banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks.

PM Updates - July 2014

As of July 31, 2014, the Net Asset Value (“NAV”) of the Fund was $24.26 versus $22.81 per unit on April 30, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2014 at $8.30 and $15.61 respectively which, when combined, represent a 1.4% discount to the NAV.D

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

As a reminder, as per the Management Information Circular dated August 20, 2010, the Fund will change the quarterly distribution for the Class A shares to a floating rate distribution that will vary and will be calculated as approximately 8% per annum of the NAV of the Class A Shares once the NAV of the Fund reaches $25.00 per unit.

The S&P/TSX Diversified Banks Total Return Index advanced to new highs during the period and ended July 31, 2014 at 4,649.67 vs. 4,238.34 on April 30, 2014. Each of the five banks within the portfolio was up during the quarter with the Bank of Nova Scotia leading the group generating a total return of 12.1%. Meanwhile, the Canadian Imperial Bank of Commerce (“CIBC”) lagged during the period, but was still up 4.6%.

The strong performance was partly attributable to second quarter earnings reported during the period that were generally better than analysts’ estimates due to lower loan loss provisions as well as strong wealth management revenues. Two of the five banks announced dividend increases in the quarter with the Bank of Montreal and CIBC increasing their dividends by 2.6% and 2.1% respectively. The Canadian banks continue to perform well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks continued to remain low for the period. The Fund was fairly inactive in its covered-call writing with an average 2.7% of the portfolio subject to covered-calls vs. 2.0% in the previous quarter. The Fund ended the quarter with nil% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 0.8% vs. 0.9% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to lower loan losses and better capital market-related revenues. Consequently, Canadian Banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks.

PM Updates - April 2014

As of April 30, 2014, the Net Asset Value (“NAV”) of the Fund was $22.81 versus $21.12 per unit on January 31, 2014. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2014 at $7.10 and $15.62 respectively which, when combined, represent a 0.4% discount to the NAV.

Distribution of $0.20319 was paid to the Class A shareholders and $0.215625 was paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index advanced to new highs during the period and ended April 30, 2014 at 4,238.34 vs. 3,852.71 on January 31, 2014. Each of the five banks within the portfolio was up during the quarter with the Bank of Montreal leading the group generating a total return of 12.1%. Meanwhile, the Royal Bank of Canada lagged during the period, but was still up 7.2%.

The strong performance was partly due to reporting first quarter earnings during the period that were generally better than analysts’ estimates due to lower loan loss provisions as well as strong wealth management revenues. Four of the five banks announced dividend increases in the quarter with The Toronto-Dominion Bank surprising the street announcing a second increase in as many quarters. The Canadian banks continue to perform well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks continued to remain low for the period. The Fund was fairly inactive in its covered-call writing with an average 2.0% of the portfolio subject to covered calls vs. 2.7% in the previous quarter. The Fund ended the quarter with nil% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 0.9% vs. 1.1% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to lower loan losses and better capital market related revenues. Consequently, Canadian banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks.

PM Updates - January 2014

As of January 31, 2014, the Net Asset Value (“NAV”) of the Fund was $21.12 versus $21.95 per unit on October 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2014 at $6.20 and $15.36 respectively which, when combined, represent a 2.1% premium to the NAV.

Distributions of $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index was down slightly during the period ending January 31, 2014 at 3,852.71 vs. 3,909.34 on October 31, 2013. Four of the five banks within the portfolio declined during the quarter with only The Toronto-Dominion Bank (TD) generating a positive total return of 1.6%. Meanwhile, the Bank of Montreal (BMO) lagged the group during the period, down 5.2%. After performing strongly into the end of 2013, the Canadian banks corrected along with the broader markets in January of 2014 as concerns arose regarding emerging market growth and also after the U.S. Federal Reserve Bank announced the second $10 billion taper of bond purchases on January 29, 2014.

Canadian banks reported fourth quarter earnings during the period that were generally better than analysts’ estimates. Two of the five banks announced dividend increases in the quarter while the remainder left dividends unchanged. The Canadian banks continued to perform very well despite slowing retail loan growth and net interest margin pressures.

Volatility for the Canadian banks continued to remain low for the period. The Fund was fairly inactive in its covered-call writing with an average 2.7% of the portfolio subject to covered-calls vs. 16.1% in the previous quarter. The Fund ended the first quarter with 15.5% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the first quarter with a cash position of 1.1% vs. 1.2% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to positive operating leverage and better capital market related revenues. Consequently, Canadian Banks are likely to continue to return cash to shareholders in the form of dividend increases and share buybacks.

PM Updates - October 2013

As of October 31, 2013, the Net Asset Value (“NAV”) of the Fund was $21.95 versus $20.25 per unit on July 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2013 at $6.57 and $15.20 respectively which, when combined, represent a 0.8% discount to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index was up during the period ending October 31, 2013 at 3,909.34 vs. 3,495.46 on July 31, 2013. All five banks within the portfolio posted strong total returns during the quarter with the Canadian Imperial Bank of Commerce leading the group up 15.2% while the Royal Bank of Canada lagged the group, but was still up 10.2%. After trading relatively sideways for the first half of 2013, the Canadian banks rallied strongly starting in July on expectations of better net interest margins as the yield curve has steepened considerably since May.

Canadian banks reported third quarter earnings during the period that were mostly above analysts’ estimates although top line revenue growth was a bit weaker than expected. Domestic retail loan growth continues to slow while net interest margins were stable. Most banks were able to offset these headwinds with stronger capital markets-related revenues along with lower loan loss provisions. The Bank of Nova Scotia, Royal Bank of Canada (“RBC”) and The Toronto-Dominion Bank increased their dividends in the quarter with RBC posting the largest increase at 6.3%.

Volatility for the Canadian banks continued to remain low for the period. The Fund was similarly active as the previous quarter in its covered-call writing with an average 16.1% of the portfolio subject to covered-calls vs. 19.4% the previous quarter. The Fund ended the fourth quarter with 8.3% of the portfolio subject to covered-calls.

The Fund maintained its invested position for the majority of the period and ended the fourth quarter with a cash position of 1.2% vs. 3.6% at the end of the previous quarter.

The Canadian banks are expected to improve profitability in 2014 due to positive operating leverage, strong wealth management revenues and improved net interest margins. Consequently, Canadian Banks are likely to continue to return capital to shareholders in the form of dividend increases and share buybacks. The stocks within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

PM Updates - July 2013

As of July 31, 2013, the Net Asset Value (“NAV”) of the Fund was $20.25 versus $20.34 per unit on April 30, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2013 at $5.78 and $15.46 respectively which, when combined, represent a 4.9% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index was up during the period ending July 31, 2013, closing at 3,495.46 vs. 3,371.27 on April 30, 2013. Four of the five banks within the portfolio posted positive total returns during the quarter with the Royal Bank of Canada (“RBC”) leading the group up 6.6% while the Canadian Imperial Bank of Commerce (“CIBC”) lagged the group for the second quarter in a row, down 2.0% on continued concerns of the bank losing market share in the domestic residential mortgage market since exiting the mortgage broker channel in 2012.

Canadian banks reported second quarter earnings during the period that were mostly above analyst’s estimates although top line revenue growth was a bit weaker than expected. Domestic retail loan growth continues to slow while net interest margins continue to narrow. Most banks were able to offset these headwinds with stronger capital markets related revenues along with lower loan loss provisions. Only CIBC increased its dividend, by 2.13%, in the quarter as the four other banks had raised their dividends in the prior quarter.

Volatility for the Canadian banks continued to remain low for the period. The Fund was more active than the previous quarter in its covered-call writing with an average 19.4% of the portfolio subject to covered calls vs. 1.7% the previous quarter. The Fund ended the third quarter with 10.8% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the third quarter with a cash position of 3.6% vs. 1.0% at the end of the previous quarter.

The profitability of Canadian banks continues to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins and the potential for a slowdown in the residential housing market in Canada. However, the Canadian banks have been able to somewhat offset lower consumer loan growth with strong commercial loan growth as well as reduced loan loss expenses. In the context of low interest rates and the potential for the Canadian Banks to continue to raise their dividends, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

PM Updates - April 2013

As of April 30, 2013, the Net Asset Value (“NAV”) of the Fund was $20.34 versus $20.91 per unit on January 31, 2013. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2013 at $5.77 and $15.90 respectively which, when combined, represent a 6.54% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

While the U.S. equity market continued to rally from the previous quarter hitting new all-time highs during the period, in Canada, the S&P/TSX Composite was down during the period. This was mainly due to weakness in the Materials sector from precious metals equities as a result of stronger U.S. dollar during the period which led to some downward pressure on gold bullion prices. Base metal equities were also down during the period on concerns of a slowdown in economic growth in China.

The S&P/TSX Diversified Banks Total Return Index was relatively flat during the period ending April 30, 2013 at 3371.27 vs. 3385.14 on January 31, 2013. Three of the five banks posted positive returns during the quarter although the difference between best and worst performing bank was quite narrow. The Bank of Montreal (“BMO”) led the group during the period up 1.5% while the Canadian Imperial Bank of Commerce (“CM”) lagged the group down 2.0%.

Canadian banks reported first quarter earnings during the period that were mostly above analyst’s estimates although top line revenue growth was a bit weaker than expected. Domestic retail loan growth continues to slow while net interest margins continue to narrow. Most banks were able to offset these headwinds with stronger capital markets related revenues along with lower loan loss provisions. Four of the five banks increased their dividends in the quarter, with CIBC being the only bank to maintain its dividend rate.

Volatility for the Canadian banks remained low for the period. The Fund was less active than the previous quarter in its covered-call writing with an average of 1.7% of the portfolio subject to covered calls vs. 31.7% in the previous quarter. The Fund ended the second quarter with 4.3% of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the second quarter with a cash position of 1.0% vs. 2.8% at the end of the previous quarter.

The profitability of Canadian banks continues to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins and the potential for a slowdown in the residential housing market in Canada. However, the Canadian banks have been able to somewhat offset lower consumer loan growth with strong commercial loan growth as well as reduced loan loss expenses. In the context of low interest rates and the potential for the Canadian Banks to continue to raise their dividends, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

PM Updates - January 2013

As of January 31, 2013, the Net Asset Value (“NAV”) of the Fund was $20.91 versus $20.53 per unit on October 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on January 31, 2013 at $6.14 and $15.61 respectively which, when combined, represent a 4.02% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

Markets continued to rally from the previous quarter supported by improving economic outlooks globally as well as the dissipation of concerns surrounding the “Fiscal Cliff” as a last minute agreement was made in the U.S. that increased taxation but pushed out the mandatory spending cuts to March 1, 2013.

The S&P/TSX Diversified Banks Total Return Index increased to 3385.14 on January 31, 2013 from 3149.98 on October 31, 2012. All five banks posted positive returns during the quarter. The Royal Bank of Canada (“RBC”) continued its outperformance relative to the group from the previous quarter, up 10.2% while The Toronto-Dominion Bank (“TD”) lagged the group for the second consecutive quarter, but still rose 3.5% during the period.

In addition to the improving global market backdrop during the period, Canadian banks also reported steady fourth quarter earnings that were mostly in line with analysts’ estimates. None of the banks increased their dividends in the quarter, which was largely expected after all five banks raised their dividends in the previous quarter. Following the announcement of issuer bids by both Canadian Imperial Bank of Commerce (“CM”) and RBC in the previous quarter, the Bank of Montreal (“BMO”) announced the filing of its own normal course issuer bid to purchase shares in the market.

Volatility for the Canadian banks continued to decline this quarter other than the brief spike in market volatility in general around the U.S. presidential election. The Fund was active in its covered-call writing with, on average, 31.7% of the portfolio subject to covered calls during the period. However, the Fund ended the first quarter with none of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the first quarter with a cash position of 2.8% vs. 0.8% at the end of the previous quarter.

The profitability of Canadian banks is likely to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins, and the potential for a slowdown in the residential housing market in Canada. However, the Canadian banks have been able to somewhat offset lower consumer loan growth with strong commercial loan growth and reduced operating expenses. In the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for their share prices.

PM Updates - October 2012

As of October 31, 2012, the Net Asset Value (“NAV”) of the Fund was $20.53 versus $20.04 per unit on July 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2012 at $5.85 and $15.49 respectively which, when combined, represent a 3.95% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

After declining amid European debt crisis concerns and fears of a decelerating global economy during the previous quarter, markets rallied strongly in the fourth quarter on the back of new monetary stimulus initiatives and bond purchase programs announced by major global central banks over the period.

The S&P/TSX Diversified Banks Total Return Index increased to 3149.98 on October 31, 2012 from 2952.48 on July 31, 2012. All five banks posted positive returns during the quarter. The Royal Bank of Canada (“RBC”) rallied the most after lagging the group the previous quarter, up 12.0% while The Toronto-Dominion Bank (“TD”) lagged the group, but still up 3.9% during the period.

In addition to the improving global market backdrop during the period, Canadian banks also reported better than expected 3rd quarter earnings in August and all five banks also raised their dividends during the quarter by 3-7%. TD increased its payout ratio to 40-50% from 35-45% while Canadian Imperial Bank of Commerce and RBC also announced normal course issuer bids to repurchase shares during the period. At the end of October, RBC also announced they were acquiring the auto finance and deposit business of ALLY Credit Canada Ltd. for $4.1 billion while TD announced they were acquiring Target Corporation’s U.S. Visa and private label credit card portfolio for an undisclosed amount.

Volatility for the Canadian banks declined back towards the lows over the period as concerns about the European debt crisis subsided. During the period, the Fund reduced its covered-call writing activity and ended the quarter with none of the portfolio subject to covered calls.

The Fund maintained its invested position for the majority of the period and ended the quarter with a cash position of 0.8% vs. 4.9% at the end of the previous quarter.

The profitability of Canadian banks is likely to grow at a slower pace in 2013 due to decelerating consumer loan growth, lower net interest margins and the potential for a slowdown in the residential housing market in Canada. However, the banks are likely to reduce expenses to offset lower revenues. In the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields which should continue to act as support for the share prices.

PM Updates - July 2012

As of July 31, 2012, the Net Asset Value (“NAV”) of the Fund was $20.04 versus $21.38 per unit on April 30, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2012 at $5.90 and $15.20 respectively which, when combined, represent a 5.29% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders for the quarter ended July 31, 2012.

The S&P/TSX Diversified Banks Total Return Index decreased to 2952.48 on July 31, 2012 from 3094.13 on April 30, 2012. After rallying in the first two quarters, the Canadian banks pulled back a bit on continued concerns regarding the European debt crisis as well as growing fears of a decelerating global economy.

All five banks posted negative returns during the quarter. The Canadian Imperial Bank of Commerce (“CM”) led the group posting the least negative return of 0.33% while the Royal Bank of Canada lagged the group down 8.99% after Moody’s Investor Service cut RBC’s credit rating by two notches on June 21, 2012.

The Canadian banks as a group did report better-than-expected second quarter earnings on strong trading revenues and stable net interest margins. Capital ratios continue to remain strong and National Bank of Canada raised their dividend in the quarter by 5.3%. We expect all the banks to continue with dividend increases throughout fiscal 2012.

Volatility for the Canadian banks rose to their highest level of 2012 as concerns about the European debt crisis moved to the forefront once again. During the period, the Fund increased its covered call writing activity and ended the quarter with 73.9% of the portfolio subject to covered calls. The Fund also bought some puts in the quarter and ended the period with approximately 25% of the portfolio hedged with protective put options.

The Fund maintained its invested position for most of the period and ended the quarter with a cash position of 4.9% vs. 0.9% at the end of the previous quarter.

The profitability of Canadian banks is likely to grow at a slower pace in 2012 due to decelerating consumer loan growth and lower net interest margins. However, in the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields and this should continue to act as support for the share prices.

PM Updates - April 2012

As of April 30, 2012, the Net Asset Value (“NAV”) of the Fund was $21.38 versus $20.93 per unit on January 31, 2012. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2012 at $6.69 and $15.20 respectively which, when combined, represent a $0.51 or 2.39% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

The S&P/TSX Diversified Banks Total Return Index increased to 3094.13 on April 30, 2012 from 2903.01 on January 31, 2012. The Canadian banks continued to rally in the fiscal second quarter after bottoming in late November last year on the back of better-than-expected first quarter earnings.

Four of the five banks posted positive returns during the quarter with only the Canadian Imperial Bank of Commerce posting a modest negative return of 1.12% on concerns regarding the sale of its FirstLine mortgage platform and the potential loss of market share in this business.

The Canadian banks as a group did report better-than-expected first quarter earnings on improved trading revenues and net interest margins. Capital ratios continue to remain strong even though reported regulatory capital was reduced during the period due to the impact of adhering to International Financial Reporting Standards as well as the adoption of the new regulatory capital standard of Basel 2.5. Three of the five banks raised their dividends in the quarter by an average of 6 percent. We expect the banks to continue with dividend increases throughout fiscal 2012.

Volatility for the Canadian banks was low during the period and the Fund reduced its covered call writing activity. The percent of the portfolio subject to covered calls on average during the period was 15.3% and ended the quarter with none of the portfolio subject to covered calls.

The Fund ended the quarter with a cash position of 0.9% vs. 5.2% at the end of the previous quarter due to some covered calls on Toronto-Dominion Bank getting exercised near the end of January.

The Canadian banks profitability is likely to grow at a slower pace in 2012 due to decelerating consumer loan growth and lower net interest margins. However, in the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields and this should continue to act as support for the share prices.

PM Updates - January 2012

As of January 31, 2012, the Net Asset Value (“NAV”) of the Fund was $20.93 versus $20.81 per unit on October 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2011 at $6.38 and $14.81 respectively which, when combined, represent a $0.26 or 1.24% premium to the NAV.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Diversified Banks Total Return Index increased to 2903.01 from 2800.44 on October 31, 2011. After bottoming in late November, the Canadian banks staged a rally along with broader equity markets at end of 2011 and into January 2012 on the likelihood that the European Central Bank along with other European Union countries would help bail out Greece as well as gradually improving economic statistics in the U.S.

Four of the five Canadian banks posted positive returns during the quarter with only the Bank of Nova Scotia (“BNS”) posting a modest negative return of 0.89% on concerns about the Bank’s capital position relative to the new Basel III requirements that are to be implemented at the end of January 2013. On February 1, 2012, BNS announced a common share offering for $1.51 billion in order to shore up their capital in advance of the upcoming Basel rules.

The Canadian bank’s as a group did report better than expected fourth quarter earnings on improved net interest margins and commercial loan growth. Capital ratios continue to build; however, none of the banks within the portfolio raised their dividends in the quarter. We expect the banks to resume dividend increases in fiscal 2012.

Volatility for the Canadian banks remained high until December and then started to decline as fourth quarter earnings for the banks came in better than expected and economic statistics in the U.S. started to improve. The Fund was active in writing covered calls during the period even though volatility declined as the Strathbridge Selective Overwriting (“SSO”) strategy provided signals to write calls. The percent of the portfolio subject to covered calls on average during the period was 23.4% and the Fund ended the quarter with approximately 39% of the portfolio subject to covered calls.

The Fund ended the quarter with a cash position of 5.2% vs. 1.2% at the end of the previous quarter due to some covered calls being exercised on Toronto-Dominion Bank in January.

The Canadian banks profitability is likely to grow at a slower pace in 2012 due to decelerating consumer loan growth and lower net interest margins. In the context of low interest rates, the valuations of companies within the portfolio remain at attractive levels when measured by price to earnings ratios or current dividend yields. Due to their strong capital ratios, Canadian banks are likely to continue to return capital to shareholders in the form of higher dividends.

PM Updates - October 2011

The Net Asset Value of the Fund at October 31, 2011 was $20.81 versus $21.37 per unit on July 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on October 31, 2011 at $6.03 and $14.56 respectively which, when combined, represent a $0.22 or 1.06% discount to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Diversified Banks Total Return Index decreased to 2800.44 from 2844.72 on July 31, 2011. After peaking in early April, the Canadian banks continued to decline with broader equity markets over the summer on increased concerns of European sovereign credit risks and the potential impact on global economic growth. However, markets stabilized in early October and rallied into year-end on the likelihood that the European Central Bank along with other European Union countries would help bail out Greece.

Four of the five banks had modest negative returns during the period with only the Canadian Imperial Bank of Commerce posting a positive return of 4.19%. Similar to last quarter, Royal Bank underperformed the other banks in the portfolio, down 4.35% on weaker than expected trading revenues. The banks as a group did report better than expected third quarter earnings but this was overshadowed by macro concerns relating to Europe. Capital ratios continue to look strong however, and both the Canadian Imperial Bank of Commerce and The Toronto-Dominion Bank raised their dividend in the quarter. We expect the banks to continue with dividend increases throughout fiscal 2012.

Due to the higher level of volatility in the Canadian banks for the majority of the period, the Fund increased its level of selective covered call writing activity as the higher volatility did compensate the Fund enough to justify this activity. The Fund ended October 31, 2011 with approximately 31% of the portfolio subject to covered calls.

The Fund also opportunistically purchased some put protection on the ishares S&P/TSX Capped Financial Index Fund (“XFN”) during the period due to concerns of European sovereign default risk increasing as well as the U.S. debt ceiling controversy impacting Canadian financials. The Fund ended October 31, 2011 with approximately 3% of the Fund subject to protective puts.

The Fund ended the quarter with a cash position of 1.2% vs. 1.6% at the end of the previous quarter.

The Canadian banks are expected to improve their profitability and capital ratios in 2012 due to improving credit, good expense control and leverage to an economic recovery. Consequently, Canadian banks are likely to continue to return capital to shareholders.

PM Updates - July 2011

The Net Asset Value of the Fund at July 31, 2011 was $21.37 versus $23.18 per unit on April 30, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on July 31, 2011 at $7.20 and $15.15 respectively which, when combined, represent a $0.98 or 4.59% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Financials Total Return Index decreased to 2320.86 from 2490.04 on April 30, 2011. After posting strong performance the previous quarter, the Canadian banks declined during the period due to weaker than expected second quarter earnings as well as heightened sovereign credit risks emanating out of Europe. Reversing their strong performance last quarter, all five banks had a negative return with the Royal Bank leading the way, down 12.88%. The Bank of Montreal posted the best relative performance of the group during the period but still declined 2.28%. These returns are reflective of the weaker than expected second quarter earnings reported by the banks due to net interest margin compression and lower capital market related revenues. Capital ratios continue to look strong however, and the Royal Bank of Canada and, for the second time in the last 3 quarters, the National Bank of Canada raised their dividend in the quarter. We expect the other banks to follow with dividend increases throughout the remainder of fiscal 2011.

Due to the low level of volatility in the Canadian banks for the majority of the period, the covered call writing activity was opportunistic as the lower volatility did not compensate the fund enough to justify a passive call writing approach. The fund ended July 30, 2011 with no portfolio investments subject to covered calls.

The fund ended the quarter with a cash position of 1.6% vs. 0.4% at the end of the previous quarter end.

The Canadian banks are expected to improve their profitability and capital ratios throughout the remainder of 2011 due to improving credit, good expense control and leverage to an improving economy. Consequently, Canadian banks are expected to resume dividend growth, share buybacks and pursuing acquisitions.

PM Updates - April 2011

The Net Asset Value of the Fund at April 30, 2011 was $23.18 versus $21.98 per unit on January 31, 2011. The Fund’s two share classes are listed on the Toronto Stock Exchange as PIC.A and PIC.PR.A. They closed on April 30, 2011 at $8.31 and $15.25 respectively which, when combined, represent a $0.38 or 1.64% premium to the Net Asset Value.

Distributions totaling $0.20319 were paid to the Class A shareholders and $0.215625 were paid to the Preferred shareholders during the quarter.

During the quarter the S&P/TSX Financials Total Return Index increased to 2490.04 from 2331.05 on January 31, 2011. After trading relatively flat the previous quarter, the Canadian banks posted strong performance during the period. All five banks within the portfolio had a positive return with the Royal Bank leading the way, up 11.95% after delivering better than expected first quarter earnings on robust trading revenues. The Bank of Nova Scotia lagged the group during the period but still posted a respectable 3.07% total return. These returns are reflective of the solid fiscal first quarter earnings reported by the banks in late February, 2011 on strong retail and wealth management earnings. Capital ratios continued to increase on a year over year basis and both The Toronto-Dominion Bank and the Bank of Nova Scotia increased their dividend in the quarter. We expect the other banks to follow with dividend increases throughout the remainder of fiscal 2011.

Volatility of the bank shares was low during the period other than a brief spike in March when the horrific earthquake and tsunami in Japan occurred. The fund was opportunistic in writing covered calls on most of the banks during the quarter.

The fund ended the quarter with a cash position of 0.4% vs. 5.8% at the end of the previous quarter end. The funds increased its invested position on the back of strong first quarter earnings results from the banks.

The Canadian banks are expected to improve their profitability and capital ratios throughout the remainder of 2011 due to improving credit, good expense control and leverage to an improving economy. Consequently, Canadian banks are expected to resume dividend growth, share buybacks and pursue acquisitions.

Fund Features

Objectives

The Fund’s investment objectives are:

  • to provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.215625 per Preferred share representing a yield on the issue price of the Preferred shares of 5.75% per annum; and
  • to provide holders of Class A shares with quarterly cash distributions targeted to be 8.0% of NAV per annum; and
  • to return the original issue price to holders of both preferred share and Class A shares upon wind-up of the Fund.

 

Investment Strategy

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

 

Option Strategy

The Fund employs option strategies to generate additional returns above the distributions earned on its equity securities. 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.

 

Distributions

Preferred shares pay fixed cumulative preferential quarterly cash distributions in the amount of $0.215625 per Preferred share representing a yield on the original issue price of the Preferred shares of 5.75% per annum.

Currently the Fund is paying distributions of $0.81276 per share per annum on the Class A shares on a quarterly basis. The Fund intends to continue to pay distributions at this rate on the Class A shares until the NAV per unit (consisting of one preferred share and one Class A share) reaches $25.00 at which point the Class A distribution will be based on 8.0% of the NAV of the Class A share.

 

Redemptions

Combined units of the fund are redeemable annually in October of each year at the option of the shareholder and shares may be redeemed monthly at a discount to market price.

Click to expand Redemption Details

Redemption Deadlines:
Class A Shares and Preferred Shares may be surrendered at any time for retraction by the Fund but will be retracted only on the last day of a month (a “Valuation Date”). Shares surrendered for retraction by a holder of Class A Shares or Preferred Shares at least ten business days prior to a Valuation Date will be retracted on such Valuation Date and such shareholder will receive payment on or before the tenth business day following such Valuation Date.

Annual Retraction:
A shareholder may concurrently retract one Preferred Share and one Class A Share on the October Valuation Date of each year at a retraction price equal to the NAV per Unit on that date.

Monthly Retraction:
The monthly retraction prices for the Class A Shares will be equal to 96% of the lesser of:

  1. the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation; and
  2. the difference between (i) the Unit Market Price (as defined below) and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation.
The monthly retraction prices for the Preferred Shares will be equal to 96% of the lesser of:
  1. the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Class A Share in the market for cancellation; and
  2. the lesser of (i) the Unit Market Price less the cost to the Fund of purchasing a Class A Share in the market for cancellation and (ii) $15.00.

For this purpose, the cost of the purchase of a Preferred Share or a Class A Share will include the purchase price of the share, commission and such other costs, if any, related to the liquidation of any portion of the Portfolio to fund the purchase of such share. Any declared and unpaid distributions payable on or before a Valuation Date in respect of Class A Shares or Preferred Shares tendered for retraction on such Valuation Date will also be paid on the retraction payment date. In addition, the following terms have the meanings set forth below.

Class A Market Pricemeans the weighted average trading price of the Class A Shares on the principal stock exchange on which the Class A Shares are listed (or, if the Class A Shares are not listed on any stock exchange, on the principal market on which the Class A Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date.
Preferred Market Pricemeans the weighted average trading price of the Preferred Shares on the principal stock exchange on which the Preferred Shares are listed (or, if the Preferred Shares are not listed on any stock exchange, on the principal market on which the Preferred Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date.
Unit Market Pricemeans the sum of the Class A Market Price and the Preferred Market Price.

 

Leverage

The Fund does not employ financial leverage, however Class A shares are considered to be leveraged investments by virtue of the Preferred Shares which rank ahead of the Class A for payment of distributions and proceeds on termination up to the Preferred Share par value of $15.00 per share. Positive or negative changes in the value of the total portfolio will have a greater effect on the value of the Class A shares. As the value of the portfolio increases this effect decreases and conversely as the value of the portfolio decreases, leverage increases.

 

Termination

The Fund is scheduled to be redeemed on November 1, 2024, subject to an automatic extension of the term for an additional seven years. In addition, shares may be sold daily on the TSX or redeemed concurrently on an annual basis at net asset value per unit.

 

CUSIP ISIN

Class A Shares
     CUSIP – 740910302
     ISIN - CA 7409103024
Preferred Shares
     CUSIP – 740910203
     ISIN - CA 7409102034

 

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. A unit consist of one Preferred Share combined with one Class A Share.

 

Management Fees

The Fund pays a management fee of 0.90% of net asset value annually to Strathbridge Asset Management for acting as the Manager and the Investment Manager.

 

MER

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

 

Inception Date

10/30/1996

 

Manager

Strathbridge Asset Management

 

Documentation

Date:      Type:      Description
August 07, 2020 Prospectus Final Short Form Base Shelf Prospectus (English)
August 07, 2020 Prospectus Final Short Form Base Shelf Prospectus (French)
July 03, 2020 Press Release PIC: Declares Quarterly Fund Distribution
June 19, 2020 Financial Report 2020 Sermi-Annual Report
June 19, 2020 Press Release PIC: Announces Semi-Annual Results
April 03, 2020 Press Release PIC: Announces Quarterly Distribution
January 22, 2020 Annual Information Form Annual Information Form Premium Income Corporation
January 09, 2020 Financial Report 2019 Annual Report
January 09, 2020 Press Release PIC: Announces Year End Results
January 06, 2020 Press Release PIC: Announces Quarterly Distribution
December 23, 2019 IRC Report IRC Report for Premium Income Corporation
October 02, 2019 Press Release PIC: Declares Quarterly Fund Distribution
August 28, 2019 Press Release PIC: Announces Closing of Overnight Offering
August 21, 2019 Press Release PIC: Announces Successful Overnight Offering
August 21, 2019 Prospectus Prospectus Supplement (English)
August 21, 2019 Prospectus Prospectus Supplement (French)
August 20, 2019 Press Release PIC: Announces Overnight Offering
July 03, 2019 Press Release PIC: Declares Quarterly Distribution
June 25, 2019 Financial Report 2019 Semi-Annual Report
June 25, 2019 Press Release PIC: Announces Semi Annual Results
June 11, 2019 Press Release PIC: Announces Closing of Overnight Offering
June 04, 2019 Press Release PIC Announces Successful Treasury Offering
June 04, 2019 Prospectus Prospectus Supplement (English)
June 03, 2019 Press Release PIC: Announces Overnight Offering
April 03, 2019 Press Release PIC: Declares Quarterly Distribution
January 29, 2019 Annual Information Form Annual Information Form Premium Income Corporation
January 28, 2019 Financial Report 2018 Annual Results
January 28, 2019 Press Release PIC: Announces Year End Results
January 22, 2019 Press Release PIC Announces Closing of Treasury Offering
January 15, 2019 Press Release PIC Announces Successful Treasury Offering
January 15, 2019 Prospectus Prospectus Supplement (English)
January 15, 2019 Prospectus Prospectus Supplement (French)
January 14, 2019 Press Release PIC: Announces Overnight Offering
January 02, 2019 Press Release PIC: Declares Quarterly Fund Distribution
November 02, 2018 Press Release PIC Announces Closing of Treasury Offering
October 26, 2018 Press Release PIC Announces Successful Treasury Offering
October 26, 2018 Prospectus Prospectus Supplement (English)
October 26, 2018 Prospectus Prospectus Supplement (French)
October 25, 2018 Press Release PIC: Announces Overnight Offering
October 02, 2018 Press Release PIC: Announces Quarterly Distribution
August 08, 2018 Prospectus Final Short Form Base Shelf Prospectus (English)
July 03, 2018 Press Release PIC: Announces Quarterly Distributions
June 14, 2018 Financial Report 2018 Semi-Annual Report
June 14, 2018 Press Release PIC: Announces Semi Annual Results
April 03, 2018 Press Release PIC: Announces Quarterly Distribution
January 29, 2018 Annual Information Form Annual Information Form Premium Income Corporation
January 12, 2018 Financial Report 2017 Annual Report
January 12, 2018 Press Release PIC: Announces Year End Results
January 02, 2018 Press Release PIC: Announces Quarterly Distribution
October 03, 2017 Press Release PIC: Announces Quarterly Distribution
September 01, 2017 Press Release PIC: Announces Automatic Term Extension
July 05, 2017 Press Release PIC: Announces Quarterly Distribution
June 28, 2017 Financial Report 2017 Semi-Annual Report
June 28, 2017 Press Release PIC: Announces Semi-Annual Results
April 04, 2017 Press Release PIC: Announces Quarterly Distribution
January 30, 2017 Annual Information Form Annual Information Form Premium Income Corporation
January 17, 2017 Financial Report 2016 Annual Report
January 17, 2017 Press Release PIC: Announces Year End Results
January 04, 2017 Press Release PIC: Announces Quarterly Distribution
October 04, 2016 Press Release PIC: Announces Quarterly Distribution
July 05, 2016 Press Release PIC: Announces Quarterly Distribution
June 10, 2016 Financial Report 2016 Semi-Annual Report
June 10, 2016 Press Release PIC: Announces Semi-Annual Results
April 04, 2016 Press Release PIC: Announces Quarterly Distribution
January 27, 2016 Annual Information Form Annual Information Form Premium Income Corporation
January 06, 2016 Press Release PIC: Announces Quarterly Distribution
December 16, 2015 Financial Report 2015 Annual Report
December 16, 2015 Press Release PIC: Announces Year End Results
October 02, 2015 Press Release PIC: Announces Quarterly Distribution
July 06, 2015 Press Release PIC: Announces Quarterly Distribution
June 18, 2015 Financial Report 2015 Semi-Annual Report
June 18, 2015 Press Release PIC: Announces Semi-Annual Results
April 02, 2015 Press Release PIC: Announces Quarterly Distribution
January 29, 2015 Annual Information Form Annual Information Form Premium Income Corporation
January 05, 2015 Press Release PIC: Announces Quarterly Distribution
January 02, 2015 Press Release Strathbridge Announces Securityholder Approval of Proposal
December 18, 2014 Financial Report 2014 Annual Report
December 18, 2014 Press Release PIC: Announces Year End Results
December 02, 2014 Prospectus Joint Information Circular
November 12, 2014 Press Release Strathbridge Announces Special Meeting
November 10, 2014 Press Release PIC: Announces Closing of Treasury Offering
October 31, 2014 Press Release PIC: Announces Exchange Ratios
October 30, 2014 Prospectus Final Follow-on Prospectus (English)
October 30, 2014 Prospectus Final Follow-on Prospectus (French)
October 24, 2014 Press Release Premium Income Corporation Follow-On National Sales Call (October 24, 2014)
October 23, 2014 Press Release PIC: Files Preliminary Prospectus for Follow-On Offering
October 22, 2014 Prospectus Preliminary Follow-on Prospectus (English)
October 22, 2014 Prospectus Preliminary Follow-on Prospectus (French)
October 17, 2014 Press Release PIC: Announces Normal Course Issuer Bid
October 03, 2014 Press Release PIC: Announces Quarterly Distributions
July 03, 2014 Press Release PIC: Announces Quarterly Distribution
June 13, 2014 Financial Report 2014 Semi-Annual Report
June 13, 2014 Press Release PIC: Announces Semi-Annual Results
April 03, 2014 Press Release PIC: Announces Quarterly Distribution
January 24, 2014 Annual Information Form Annual Information Form Premium Income Corporation
January 03, 2014 Press Release PIC: Announces Quarterly Distribution
December 19, 2013 Financial Report 2013 Annual Report
December 19, 2013 Press Release PIC: Announces Year End Results
October 01, 2013 Press Release PIC: Announces Quarterly Distribution
July 03, 2013 Press Release PIC: Announces Quarterly Distribution
June 14, 2013 Financial Report 2013 Semi-Annual Report
June 14, 2013 Press Release PIC: Announces Semi-Annual Results
April 03, 2013 Press Release PIC: Announces Quarterly Distribution
January 29, 2013 Annual Information Form Annual Information Form Premium Income Corporation
January 03, 2013 Press Release PIC: Announces Quarterly Distribution
December 20, 2012 Financial Report 2012 Annual Report
December 20, 2012 Press Release PIC: Announces Year End Results
November 30, 2012 Press Release PIC: Announces Daily NAV During Rights Offering
November 08, 2012 Prospectus Rights Offering Final Prospectus (English)
November 08, 2012 Prospectus Rights Offering Final Prospectus (French)
November 05, 2012 Press Release PIC: Files Final Short Form Prospectus for Rights Offering
October 22, 2012 Press Release Announces Rights Offering
October 22, 2012 Prospectus Rights Offering Preliminary Prospectus - English
October 22, 2012 Prospectus Rights Offering Preliminary Prospectus - French
October 03, 2012 Press Release PIC: Announces Quarterly Distribution
July 03, 2012 Press Release PIC: Announces Quarterly Distribution
June 19, 2012 Financial Report 2012 Semi-Annual Report
June 19, 2012 Press Release PIC: Announces Semi-Annual Results
April 04, 2012 Press Release PIC: Announces Quarterly Distribution
January 31, 2012 Annual Information Form Annual Information Form Premium Income Corporation
January 19, 2012 Press Release Announces Normal Course Issuer Bid
January 04, 2012 Press Release PIC: Announces Quarterly Distribution
December 21, 2011 Financial Report 2011 Annual Report
December 21, 2011 Press Release PIC: Announces Year End Results
October 05, 2011 Press Release PIC: Announces Quarterly Distribution
October 03, 2011 Press Release Mulvihill Capital Management Inc. Proudly Announces a Name Change to Strathbridge Asset Management Inc.
July 04, 2011 Press Release PIC: Announces Quarterly Distribution
June 20, 2011 Financial Report 2011 Semi-Annual Report
June 17, 2011 Press Release PIC: Announces Semi-Annual Results
April 28, 2011 Press Release PIC : Prospectus Simplifié
April 28, 2011 Press Release PIC: Files Final Prospectus for Warrant Offering
April 28, 2011 Press Release PIC: Final Short Form Prospectus
April 26, 2011 Prospectus Warrant Offering Short Form Prospectus (English)
April 26, 2011 Prospectus Warrant Offering Short Form Prospectus (French)
April 05, 2011 Press Release PIC: Announces Quarterly Distribution
March 17, 2011 Press Release PIC: Files Preliminary Prospectus and Warrant Offering
March 17, 2011 Press Release PIC: Preliminary Short Form Prospectus
January 26, 2011 Financial Report 2010 Annual Report
January 26, 2011 Press Release PIC: Announces Year End Results
January 04, 2011 Press Release PIC: Announces Quarterly Distribution
December 17, 2010 Press Release PIC: Announces Normal Course Issuer Bid
October 29, 2010 Press Release PIC: Announces Class A Share Consolidation Ratio
October 04, 2010 Press Release PIC: Announces Quarterly Distribution
September 30, 2010 Press Release PIC: Announces Shareholder Approval of Proposal to Extend Redemption Date
August 31, 2010 Press Release PIC: Notice of Special Meeting of Shareholders
August 26, 2010 Press Release PIC: Announces Proposal to Extend Redemption Date
August 26, 2010 Press Release PIC: Notice of Special Meeting of Shareholders
August 20, 2010 Press Release PIC: Announces Proposal to Extend Redemption Date
August 20, 2010 Prospectus Management Information Circular (English)
July 06, 2010 Press Release PIC: Quarterly Distributions Declared
June 18, 2010 Financial Report 2010 Semi-Annual Report
June 18, 2010 Press Release PIC: Announces Semi-Annual Results
April 05, 2010 Press Release PIC: Declares Quarterly Distribution
January 22, 2010 Financial Report 2009 Annual Report
January 22, 2010 Press Release PIC: Announces Year End Results
January 05, 2010 Press Release PIC: Declares Quarterly Distribution
September 03, 2009 Press Release PIC: Quarterly Distributions Declared
August 18, 2009 Press Release PIC: Announces Normal Course Issuer Bid
July 02, 2009 Press Release PIC: Quarterly Distributions Declared
June 19, 2009 Financial Report 2009 Semi Annual Report
June 19, 2009 Press Release PIC: Announces Semi Annual Results
April 02, 2009 Press Release PIC: Quarterly Distributions Declared
January 26, 2009 Financial Report 2008 Annual Report
January 26, 2009 Press Release PIC: Announces Year End Results
January 05, 2009 Press Release PIC: Quarterly Distributions Declared
September 23, 2008 Press Release PIC: Quarterly Distributions Declared
July 03, 2008 Press Release PIC: Quarterly Distributions Declared
July 02, 2008 Financial Report 2008 Semi-Annual Report
June 25, 2008 Press Release PIC: Announces Semi-Annual Results
April 03, 2008 Press Release PIC: Quarterly Distributions Declared
January 04, 2008 Financial Report Annual Report 2007
January 04, 2008 Press Release PIC: Annouces Year End Reults
January 03, 2008 Press Release PIC: Special Distribution, Quarterly Distributions Declared
October 02, 2007 Press Release PIC: Special Distribution, Quarterly Distributions Declared
July 05, 2007 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 20, 2007 Financial Report 2007 Semi-Annual Report
June 20, 2007 Press Release PIC: Announces Semi-Annual Results
April 04, 2007 Press Release PIC: Special Dividend, Quarterly Dividends Declared
January 03, 2007 Press Release PIC: Declares Quarterly Distribution
December 21, 2006 Financial Report Annual Report 2006
December 21, 2006 Press Release PIC: Annouces Year End Reults
October 04, 2006 Press Release PIC: Special Dividend, Quarterly Dividends Declared
July 05, 2006 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 20, 2006 Financial Report 2006 Semi-Annual Report
June 20, 2006 Press Release PIC: Announces Semi-Annual Results
April 12, 2006 Press Release PIC: Press Release
April 04, 2006 Press Release PIC: Special Dividend, Quarterly Dividends Declared
February 20, 2006 Financial Report PIC: 2005 Annual Report
February 20, 2006 Press Release PIC: Announces Annual Results
January 05, 2006 Press Release PIC: Special Dividend, Quarterly Dividend Declared
October 04, 2005 Press Release PIC: Special Dividend, Quarterly Dividends Declared
July 05, 2005 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 15, 2005 Financial Report PIC: 2005 Semi-Annual Report
June 15, 2005 Press Release PIC: Announces Semi-Annual Results
April 04, 2005 Press Release PIC: Special Dividend, Quarterly Dividends Declared
January 04, 2005 Press Release PIC: Special Dividend, Quarterly Dividends Declared
December 16, 2004 Financial Report PIC: 2004 Annual Report
December 16, 2004 Press Release PIC: Announces Annual Results
October 05, 2004 Press Release PIC: Special Dividend, Quarterly Dividends Declared
September 30, 2004 Press Release PIC: Completes Follow-on Treasury Offering of Preferred Shares and Class A Shares
September 24, 2004 Press Release PIC: Final Prospectus Filed for Follow-on Treasury Offering
September 23, 2004 Prospectus Follow-on Offering (English)
September 23, 2004 Prospectus Follow-on Offering (French)
September 22, 2004 Press Release PIC: Notice of Switch Ratios
August 16, 2004 Press Release PIC: MCM Pro-AMS Funds - Notice of Special Retraction Privilege
July 06, 2004 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 09, 2004 Press Release PIC: Announces Semi Annual Results
June 08, 2004 Financial Report PIC: 2004 Semi - Annual Report
April 05, 2004 Press Release PIC: Special Dividend, Quarterly Dividends Declared
February 02, 2004 Press Release PIC: Announces Year End Financial Results
January 06, 2004 Press Release PIC: Special Dividend, Quarterly Dividends Declared
October 06, 2003 Press Release PIC: Special Dividend, Quarterly Dividends Declared
September 23, 2003 Press Release PIC: Final Prospectus Filed
September 22, 2003 Prospectus Follow-on Prospectus (English)
September 22, 2003 Prospectus Follow-on Prospectus (French)
August 18, 2003 Press Release PIC: Amended Preliminary Prospectus Filed
August 09, 2003 Financial Report PIC: 2003 Annual Report
August 08, 2003 Financial Report PIC: 2003 Semi - Annual Report
July 02, 2003 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 11, 2003 Press Release PIC: Announces Semi-Annual Financial Results
May 16, 2003 Press Release PIC: Shareholders Approve Special Resolution
April 15, 2003 Prospectus Management Information Circular (English)
April 03, 2003 Press Release PIC: Announces Extension of Redemption Date
April 02, 2003 Press Release PIC: Special Dividend, Quarterly Dividends Declared
January 15, 2003 Press Release PIC: Announces Year End Financial Results
January 03, 2003 Press Release PIC: Special Dividend, Quarterly Dividends Declared
October 01, 2002 Press Release PIC: Special Dividend, Quarterly Dividends Declared
August 09, 2002 Financial Report PIC: 2002 Annual Report
August 08, 2002 Financial Report PIC: 2002 Semi - Annual Report
July 22, 2002 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 10, 2002 Press Release PIC: Announces Semi-Annual Results
April 19, 2002 Press Release PIC: Special Dividend, Quarterly Dividends Declared
January 14, 2002 Press Release PIC: Special Dividend, Quarterly Dividends Declared
January 07, 2002 Press Release PIC: Announces Year End Financial Results
October 22, 2001 Press Release PIC: Special Dividend, Quarterly Dividends Declared
August 09, 2001 Financial Report PIC: 2001 Annual Report
August 08, 2001 Financial Report PIC: 2001 Semi - Annual Report
July 18, 2001 Press Release PIC: Special Dividend, Quarterly Dividends Declared
June 28, 2001 Press Release PIC: Announces Semi-Annual Results
April 16, 2001 Press Release PIC: Special Dividend, Quarterly Dividends Declared
January 15, 2001 Press Release PIC: Announces Year End Financial Results
January 15, 2001 Press Release PIC: Special Dividend, Quarterly Dividends Declared
October 18, 2000 Press Release PIC: Special Year End Dividend Declare
August 09, 2000 Financial Report PIC: 2000 Annual Report
August 08, 2000 Financial Report PIC: 2000 Semi - Annual Report
July 13, 2000 Press Release PIC:Special Dividend, Quarterly Dividends Declared
June 28, 2000 Press Release PIC: Announces Semi-Annual Results
January 10, 2000 Press Release PIC:Special Dividend, Quarterly Dividends Declared
January 06, 2000 Press Release PIC: Announces Year End Financial Results
October 20, 1999 Press Release PIC: Year End Dividends, Special Dividend Declared
August 09, 1999 Financial Report PIC: 1999 Annual Report
August 08, 1999 Financial Report PIC: 1999 Semi - Annual Report
July 29, 1999 Press Release PIC: Shareholders Approve Special Resolution
July 21, 1999 Press Release PIC: Quarterly Dividends, Special Dividend Declared
July 05, 1999 Prospectus Management Information Circular (English)
June 16, 1999 Press Release PIC: Notice of Special Meeting
January 20, 1999 Press Release PIC: Quarterly Dividends, Special Dividend Declared
January 15, 1999 Press Release PIC: Announces Year End Financial Results
October 21, 1998 Press Release PIC: Year End Dividends, Special Dividend Declared
August 09, 1998 Financial Report PIC: 1998 Annual Report
August 08, 1998 Financial Report PIC: 1998 Semi - Annual Report
July 21, 1998 Press Release PIC: Quarterly Dividends, Special Dividend Declared
April 21, 1998 Press Release PIC: Quarterly Dividends, Special Dividend Declared
January 19, 1998 Press Release PIC: Quarterly Dividends, Special Dividend Declared
January 14, 1998 Press Release PIC: Announces Year End Financial Results
October 17, 1997 Press Release PIC: Quarterly Dividends, Special Dividend Declared
August 09, 1997 Financial Report PIC: 1997 Annual Report
August 08, 1997 Financial Report PIC: 1997 Semi - Annual Report
July 21, 1997 Press Release PIC:Quarterly Dividends, Special Dividend Declared
April 22, 1997 Press Release PIC: Quarterly Dividends, Special Dividend Declared
January 21, 1997 Press Release PIC: Quarterly Dividend Declared
October 17, 1996 Prospectus Initial Public Offering Prospectus (English)
October 17, 1996 Prospectus Initial Public Offering Prospectus (French)

Administration & Governance

Introduction

Strathbridge Asset Management serves as the Manager and the Investment Manager of the Fund.

 

Manager

The Manager is responsible for providing or arranging for the provision of administrative services to the Fund including but not limited to:

  • authorizing the payment of operating expenses incurred on behalf of the Fund,
  • preparing financial statements and other accounting information,
  • ensuring that unitholders are provided with annual and semi-annual reports and other reports as required by applicable law;
  • ensuring the fund complies with regulatory requirements and applicable stock exchange listing requirements;
  • providing the Trustee with information and reports as required;
  • calculating and arranging for the payment of distributions;
  • negotiating any contractual agreements with third-party providers of services to the Fund, including auditors, printers, registrar and transfer agent
  • Overseeing and paying monthly and annual redemptions;
  • Managing the issuer bid;
  • Maintaining the website and ongoing communication with investors.

The Management fee payable to the Manager includes any amount payable to the Investment Manager.

 

Investment Manager

The Investment Manager is responsible for making all investment decisions and managing the call option writing program in accordance with the investment objectives, strategies and restrictions of the Fund. Fees for the provision of investment management services are included in the management fee.

The Investment Manager has an asset mix committee consisting of senior members of the firm. The investment process for the Fund begins at the asset mix committee. Members of this committee meet monthly to examine macro-economic variables and relationships among dominant economic factors. This process culminates in an outlook for the various capital markets around the world and provides the Fundamental basis for Strathbridge’s long-term market outlook. These views are integrated into the investment decision making process at the portfolio management level. The asset mix committee of Strathbridge oversees investment decisions made by the portfolio managers of the Fund.

 

Independent Review Committee

The Fund has established an Independent Review Committee (“IRC”) in accordance with National Instrument 81-107 – Independent Review Committee for Investment Funds (“NI 81-107”) which is comprised of three members who are independent of the Manager. The mandate of the IRC is to review and provide its decisions to the Manager regarding any conflict of interest matters relating to its management of the Fund that the Manager has identified and brought to the committee.

A conflict of interest matter is a situation where a reasonable person would consider the Manager or an entity related to it to have an interest that may conflict with the Manager’s ability to act in good faith and in the best interests of the Funds and Securityholders. Click here for the IRC Report to Securityholders.

Click here to review members of the IRC.

 

Board of Directors

The Fund has established a Board of Directors to assist the Fund in the provision of services by the Manager and the Investment Manager and to provide oversight of these activities. The Board of Directors consists of five members, three of whom are independent of the Manager and Investment Manager. The three independent members of the Board of Directors are also members of the Independent Review Committee. The Board of Directors includes an audit committee whose mandate is to review the annual and semi-annual financial statements and discuss any issues with the auditors.

 

Trustee and Custodian

RBC Investor & Treasury Services

 

Registrar and Transfer Agent

Computershare Investor Services Inc.

 

Legal Counsel

Osler Hoskin & Harcourt LLP

 

Auditors

Deloitte & Touche LLP

Financial & Regulatory

The Annual Report and the Interim Report include the Management Report on Fund Performance and the Financial Statements of the Fund.

Report Year:      Release Date Description
2020 June 19, 2020 2020 Sermi-Annual Report

 

The Annual Information Form (“AIF”) is a regulatory filing that provides material information to investors about the Fund’s structure, operations, risks and other factors that may affect the Fund. The AIF is supplemented throughout the year by other filings including press releases, information circulars, prospectuses, material change reports, the annual and interim management report on fund performance and the financial statements.

Date Description
January 22, 2020 Annual Information Form

 

The Fund has adopted the proxy voting guidelines with respect to the voting of proxies received by it relating to voting securities held by the Fund. The proxy guidelines establish standing policies and procedures for dealing with routine matters, as well as circumstances where deviations may occur from such standing policies. Click here for proxy guidelines.

The Fund has retained ISS Governance Services to administer and implement the proxy guidelines for the Fund. Click here to review the proxy voting record.