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Provide Unitholders of the Trust with a stable stream of quarterly cash distributions in an amount targeted to be 7.50% of NAV per unit.
The Trust intends to return at a minimum, the NAV per unit as of the special resolution date (approx. $15.00) to Unitholders upon termination of the Trust on December 31, 2010. |
The Trust will invest exclusively in shares of the six largest Canadian Banks and four largest life insurance companies generally investing not less than 5% and not more than 15% of the Trust's assets in each company.
To generate additional returns above the dividend income generated by the portfolio, the Trust will from time to time write covered call options. |
- As of June 30, 2010, the NAV of TCT.UN was $10.02 versus $11.39 on March 31, 2010.
- A quarterly distribution of $0.20138 was declared and paid to unitholders of record as of June 15, 2010 and represents a distribution policy of 7.5% per annum on the NAV of the unit.
- The units trading price of $9.75 represents a discount of –2.69% to its underlying net asset value.
- During the period The S&P/TSX Financials Total Return Index decreased from 2255.33 to 2034.09. All the financial stocks within the universe were down during the period. Industrial Alliance Insurance, was the best performer of the group, down 0.29% while Manulife Financial Corp lagged the group, declining 22.90% during the quarter.
- Volatility picked up considerably during the quarter as equity markets corrected due to ongoing concerns about the pace of recovery. Due to the increase in volatility, the fund is taking advantage by increasing our covered call writing program on selected holdings.
- The fund reduced its invested position marginally from last quarter by increasing its cash holdings from 4.5% at the end of last quarter to 6.4% at the end of June 2010.
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