Year End Financial Results
Toronto, January 14, 1998: Premium Income Corporation (the "Company") announces results for the year ended October 31, 1997. Total results from financial operations amounted to $15.6 million or $3.022 per unit. Net Assets increased from $95.6 million to $107.4 million. Distributions to shareholders in the year amounted to $3.5 million to Preferred shareholders or $0.88 per Share, and $11.8 million to Class A shareholders or $2.70 per Share which included a $1.90 special distribution.
A Unit consists of one Class A share and one Preferred share of the Corporation. Preferred shareholders receive dividends at a rate of 5.75% of their par value of $15.00. The Corporation's dividend policy on the Class A shares has been initially set at a rate of $0.80 per share, equivalent to 8% based on the Class A shares initial public offering price of $10.00.
Premium Income Corporation is a mutual fund corporation which invests in the common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and The Toronto-Dominion Bank. To generate additional returns above the dividend income earned on the Portfolio, the Company will from time to time write covered call options in respect to all or part of the common shares in the portfolio.
Its investment manager, Mulvihill Capital Management, manages the Company's investment portfolio. The Company's Preferred and Class A shares are listed on The Toronto Stock Exchange and the Montreal Exchange under the symbols PIC.PR.A and PIC.A.