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Provide holders of Preferred shares with fixed cumulative preferential monthly cash distributions in the amount of $0.04375 per Preferred share representing a yield on the issue price of the Preferred shares of 5.25% per annum.
Provide holders of Class A shares with regular monthly cash distributions targeted to be 6.0% per annum on the Net Asset Value of the fund and to return the original issue price to holders of both Preferred shares and Class A shares at the time of redemption of shares on December 1, 2014 (the "Termination Date").
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The Fund invests in shares of the Bank of Nova Scotia ("BNS"). To generate additional returns above the dividend income earned on BNS shares, the Fund may, from time to time, write covered call options in respect of some or all of such BNS shares. The number of BNS shares that may be subject to call options and the terms of such options will vary from time to time, based on MCM's assessment of market conditions.
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Preferred |
Class A Share |
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Preferred |
Class A Share |
| Ticker Symbol: |
SBN.PR.A |
SBN |
2010 |
$0.262500 |
$0.307300 |
| Distribution Policy: |
$0.04374 per mo |
6% p.a. of nav paid monthly |
2009 |
$0.525000 |
$0.423350 |
| Original Issue Price: |
$10 on May 17, 2007 |
$15 on May 17, 2007 |
2008 |
$0.525000 |
$0.675450 |
| Eligible for: |
RRSP, DPSP, RRIF, RESP |
2007 (initial distr) |
$0.325210 |
$0.507570 |
| Termination Date: |
December 1, 2014 |
Cumulative Total |
$1.637710 |
$1.913670 |
| Website Information: |
www.mulvihill.com |
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| Liquidity Features: |
Exchange traded and monthly redemptions |
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- The net asset value of the Fund at June 30, 2010 was $19.24 compared to $20.38 per unit on March 31, 2010. The Fund’s two share classes are listed on the Toronto Stock Exchange as SBN and SBN.PR.A. They closed on June 30, 2010 at $7.50 and $10.14 respectively which, when combined, represent a $1.60 discount -8.32% to the actual net asset value.
- Distributions totaling $0.1574 were paid to Class A and $0.13125 paid to Preferred unitholders during the quarter.
- The value of BNS shares at June 30th, 2010 was $49.05 compared to $50.88 on March 31, 2010. BNS paid a dividend of $0.49 during the quarter.
- The relative underperformance in NAV is due, in part, to the cost of put protection acquired during the quarter.
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