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Provide Preferred security holders with fixed quarterly cash interest payments at least equal to 6.00% p.a.
Repay the principal amount of $12.50 per Preferred security on termination of the Trust on March 31, 2011.
Provide Capital Unit unitholders with a stable stream of quarterly cash distributions in an amount targeted to be 7.50% p.a. of the NAV of the Trust. |
The Trust will invest exclusively in shares of the six largest Canadian banks and four largest Canadian 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. |
| |
Preferred Security |
Capital Unit |
|
Preferred Security |
Capital Unit |
| Ticker Symbol: |
TXT.PR.A |
TXT.UN |
2010 |
$0.19531 |
$0.08175 |
| Distribution Policy: |
$0.78125 p.a. |
7.5% p.a. of Net Asset Value |
2009 |
$0.78124 |
$0.21526 |
| Original Issue Price: |
$12.50 on February 15, 2006 |
$13.10 on February 15, 2006
|
2008 |
$0.78124 |
$0.48188 |
| Eligible for: |
RRSPs, DPSPs, RRIFs, RESPs |
2007 |
$0.78124 |
$0.82650 |
| Termination Date: |
March 31, 2011 |
2006 |
$0.77743 |
$0.84287 |
| Website Information: |
www.mulvihill.com |
2005 (December) |
$0.06042 |
$0.69856 |
| Liquidity Features: |
Exchange traded and monthly redemptions |
Cumulative Total |
$3.37688 |
$3.14682 |
| Fund Origin: |
Conversion of First Premium US Trust |
|
|
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- As of March 31, 2010, the Net Asset Value of TXT.PR.A was $12.50.
- The Net Asset Value of TXT.UN was $5.14 versus $4.39 on December 31, 2009.
- A quarterly distribution of $0.19531 was declared and paid to Preferred Security unit holders of record March 15, 2010 representing a yield of 6.25% based on the original issue price of $12.50.
- A quarterly distribution of $0.08175 was declared and paid to Capital unit holders of record as of March 15, 2010 and represents a distribution policy of 7.5% per annum on the NAV of the unit.
- The capital units trading price of $4.20 represents a discount of –18.2% to its underlying net asset value.
- During the period The S&P/TSX Financials Total Return Index increased from 2086.39 to 2255.33. All the financial stocks within the universe were up during the period. Toronto Dominion Bank, was the best performer of the group, up 14.77% while National Bank of Canada lagged the group, advancing just 2.66% during the quarter.
- Volatility reached lows in the sector not seen since late 2007. The covered call writing activity was opportunistic and took advantage of market weakness early in the quarter to write covered calls on select names in the portfolio.
- The fund increased its invested position by reducing its cash holdings from 9.3% at the end of last year to 4.8% at the end of the quarter.
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