 |
|
Provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.13125 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 quarterly cash distributions targeted to be 8.0% per annum and to return the original issue price to holders of both Preferred shares and Class A shares at the time of redemption of such shares on June 30, 2011 (the "Termination Date").
|
The net proceeds of the offering are invested by the Fund in a portfolio (the "Portfolio") which includes common equity securities selected from the ten largest financial services companies by market capitalization in each of Canada (at the operating level), the United States and the Rest of the World (the "Portfolio Universe"). In addition, the issuers of the securities in the Fund's Portfolio, other than those of Canadian issuers, must have a minimum local currency issuer credit rating of "A" from Standard & Poor's or a comparable rating from an equivalent agency.
In addition, up to 20% of the Net Asset Value of the Fund may be invested in common equity securities of financial services companies that are not in the Portfolio Universe as long as such companies have a market capitalization at the time of investment of at least US$10.0 billion and for non-Canadian issuers, a minimum local currency issuer credit rating of "A" from Standard & Poor's or a comparable rating from an equivalent rating agency.
To generate additional returns above the dividend income earned on the portfolio, the Fund will from time to time write covered call options. |
| |
Preferred |
Capital Share |
|
Preferred |
Capital Share |
| Ticker Symbol: |
WFS.PR.A |
WFS |
2010 |
$0.26250 |
--- |
| Distribution Policy: |
$0.13125 per quarter |
suspended as NAV below $15.00 |
2009 |
$0.52500 |
suspended December 2008 |
| Original Issue Price: |
$10.00 on February 17, 2004 |
$15.00 on February 17, 2004 |
2008 |
$0.52500 |
$0.90 |
| Eligible for: |
RRSPs, DPSPs, RRIFs, RESPs |
2007 |
$0.52500 |
$1.20 |
| Termination Date: |
June 30, 2011 |
2006 |
$0.52500 |
$1.20 |
| Website Information: |
www.mulvihill.com |
2005 |
$0.52500 |
$1.20 |
| |
|
2004 |
$0.45560 |
$1.041237 |
| Liquidity Features: |
Exchange traded and monthly redemptions |
Cumulative Total |
$3.34310 |
$5.541237 |
| |
|
|
|
- As of June 30, 2010, the Net Asset Value of a combined unit was $10.77 versus $13.35 on March 31, 2010.
- The quarterly distribution of $0.13125 per Preferred Share was paid June 30, 2010 to shareholders of record as of June 15, 2010.
- The quarterly distribution for the Class A share remains suspended after it was discontinued in December 2008 in accordance with the terms of the prospectus, which states “No distribution will be paid to the Class A shares if (i) the distributions payable on the Preferred shares are in arrears; or (ii) after the payment of the distribution by the Company, the NAV per unit would be less than $15.00. As of May 31, 2010 the NAV per unit was $11.68, which is below the $15.00 suspension threshold.
- The Class A Share trading price of $1.44 represents a premium of 87.01% to its NAV of $0.77.
- During the period the MSCI World Financial Services Index (in Canadian dollar terms) was down moving from 84.87 to 74.32.
- The Financial Services indices in the 3 geographic regions had negative returns during the quarter with all three indices S&P/TSX Financials Index, the S&P 500 Financials Index and the MSCI EAFE Financials Index having close to double digit losses for 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 had a cash position of –5.6% as of June 30, 2010, net of retractions received at the end of the quarter.
- The fund ended the quarter with a regional asset mix of 28.9% weight in Canada, a 41.8% weight in the United States and a 34.9% weight in the Rest of World.
- The U.S. dollar exposure was increased during the quarter ended June 30, 2010 essentially fully hedged.
|
| |
|
