Fund Overview
Overview
The Fund is a split share corporation which invests in a diversified portfolio of primarily large capitalization global equity securities. The Fund employs an active covered call writing strategy to enhance the income generated by the Portfolio and to reduce volatility. In addition, the Fund may write cash covered put options in respect of securities in which it is permitted to invest.
Objectives
The Fund’s investment objectives are:
- to provide Preferred Shareholders with fixed cumulative preferential monthly cash distributions in an amount of $0.0625 per Preferred Share, representing a yield on the $10.00 original issue price of the Preferred Shares of 7.5% per annum;
- to provide Class A Shareholders with monthly cash distributions targeted to be 12.0% per annum payable monthly on the consolidated Class A Share net asset value per Share; and
- to return the issue price to holders of both Preferred Shares and Class A Shares at the time of redemption of such Shares on the termination date.
| Name |
Ticker |
Current NAV |
Current Yield |
Recent
Distributions |
Most Recent
Distribution Date |
Distributions
Since Inception |
| Premium Global Income Split Corp. |
PGIC.PR.A |
$10.00 |
7.36%
|
$0.06 |
2024-11-29 |
$0.31 |
| Premium Global Income Split Corp. |
PGIC |
$7.73 |
13.79%
|
$0.08 |
2024-11-29 |
$0.40 |
Historic Net Asset Value Per Unit
|
Date:
|
NAV Per
Class A Share |
NAV Per
Preferred Share |
| 2024-11-14 |
$7.73 |
$10.00 |
| 2024-11-07 |
$7.98 |
$10.00 |
| 2024-10-31 |
$7.65 |
$10.00 |
| 2024-10-24 |
$7.92 |
$10.00 |
| 2024-10-17 |
$8.10 |
$10.00 |
| 2024-10-10 |
$8.03 |
$10.00 |
| 2024-09-30 |
$7.99 |
$10.00 |
| 2024-09-26 |
$7.99 |
$10.00 |
| 2024-09-19 |
$7.65 |
$10.00 |
| 2024-09-12 |
$7.75 |
$10.00 |
| 2024-09-05 |
$7.61 |
$10.00 |
| 2024-08-30 |
$7.86 |
$10.00 |
| 2024-08-22 |
$7.65 |
$10.00 |
| 2024-08-15 |
$7.64 |
$10.00 |
| 2024-08-08 |
$7.27 |
$10.00 |
| 2024-07-31 |
$7.87 |
$10.00 |
| 2024-07-25 |
$7.52 |
$10.00 |
| 2024-07-18 |
$7.69 |
$10.00 |
| 2024-07-11 |
$8.11 |
$10.00 |
| 2024-07-05 |
$8.05 |
$10.00 |
Distributions & Tax
Preferred shares pay fixed cumulative preferential monthly cash distributions in the amount of $0.0625 per Preferred share representing a yield on the issue price of the Preferred shares of 7.5% per annum.
Class A shares have a targeted distribution of $0.0800 per month resulting in an 12.0% yield per annum.
Most Recent Distributions
| Name |
Ticker |
Current Yield* |
Recent
Distributions |
Most Recent
Distribution Date |
Distributions
Since Inception |
| Premium Global Income Split Corp. |
PGIC.PR.A |
7.36%
|
$0.06 |
2024-11-29 |
$0.31 |
| Premium Global Income Split Corp. |
PGIC |
13.79%
|
$0.08 |
2024-11-29 |
$0.40 |
Tax Benefits
Distributions from the Fund may have significant tax benefits which result in higher after-tax cash flow than if the income had been earned outside of the Fund. Distributions on the Preferred Shares will generally be classified as dividend income or a return of capital for tax purposes. It is expected that the distributions on the Class A shares will mainly be comprised of capital gains or return of capital. To the extent that any portion of the distribution is ordinary taxable dividends and not capital gains dividends, they will be eligible dividends. The Fund will generally earn dividends on portfolio securities, interest income on cash balances and option premium income which is generally taxed as capital gains. Some portion of a distribution may be considered a return of capital for tax purposes, which is not included in an investor’s taxable income for a year, but will reduce the adjusted cost base of the shares, by the amount received. The reduction in the adjusted cost base of the shares is ultimately taxed as a capital gain when the shares are sold for investors who hold their shares as capital property.
The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March following receipt of the information from the Fund's custodian. This information will also be posted on the website as soon as it is available.
This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.
| Tax and Distribution Summary- PGIC.PR.A |
Year Selection: |
| Record Date |
Regular Distribution |
Special Distribution |
Total Distribution |
Capital Gains
per Unit |
Div. Income per Unit |
Return of Capital |
Interest and Other Income |
Foreign Dividend Income |
Witholding Taxes Paid |
| November 2024 |
0.062500 |
0.000000 |
0.062500 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| October 2024 |
0.062500 |
0.000000 |
0.062500 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| September 2024 |
0.062500 |
0.000000 |
0.062500 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| August 2024 |
0.062500 |
0.000000 |
0.062500 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| July 2024 |
0.062500 |
0.000000 |
0.062500 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| Total for 2024 |
|
|
$0.312500 |
$0.000000 |
$0.000000 |
$0.000000 |
$0.000000 |
$0.000000 |
$0.000000 |
| Percent (%) |
|
|
|
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Total Distributions
to Date |
|
|
$0.312500 |
|
|
|
|
|
|
| Tax and Distribution Summary- PGIC |
| Record Date |
Regular Distribution |
Special Distribution |
Total Distribution |
Capital Gains
per Unit |
Div. Income per Unit |
Return of Capital |
Interest and Other Income |
Foreign Dividend Income |
Witholding Taxes Paid |
| November 2024 |
0.080000 |
0.000000 |
0.080000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| October 2024 |
0.080000 |
0.000000 |
0.080000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| September 2024 |
0.080000 |
0.000000 |
0.080000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| August 2024 |
0.080000 |
0.000000 |
0.080000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| July 2024 |
0.080000 |
0.000000 |
0.080000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
0.000000 |
| Total for 2024 |
|
|
$0.400000 |
$0.000000 |
$0.000000 |
$0.000000 |
$0.000000 |
$0.000000 |
$0.000000 |
| Percent (%) |
|
|
|
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Total Distributions
to Date |
|
|
$0.400000 |
|
|
|
|
|
|
Portfolio Manager Updates
There are no portfolio manager updates available for this fund.
Fund Features
Objectives
The Fund’s investment objectives are:
- to provide Preferred Shareholders with fixed cumulative preferential monthly cash distributions in an amount of $0.0625 per Preferred Share, representing a yield on the $10.00 original issue price of the Preferred Shares of 7.5% per annum;
- to provide Class A Shareholders with monthly cash distributions targeted to be 12.0% per annum payable monthly on the consolidated Class A Share net asset value per Share; and
- to return the issue price to holders of both Preferred Shares and Class A Shares at the time of redemption of such Shares on the termination date.
Investment Strategy
The Fund invests in a diversified portfolio of primarily large capitalization global equity securities actively selected by the Manager. The Fund may also invest up to 100% of its net assets in other public investment funds, including investment funds managed by the Manager. In addition, the Fund will be exposed to securities traded in foreign currencies and may, in the Manager’s discretion, enter into currency hedging transactions to reduce the effects of changes in the value of foreign currencies relative to the value of the Canadian dollar.
Option Strategy
The Fund employs option strategies to generate additional returns above the distributions earned on its equity securities. In addition, the Fund may write cash covered put options and may invest up to 10% of net assets to purchase call options, both in respect of securities in which the Fund is permitted to invest.
Distributions
Preferred shares pay fixed cumulative preferential monthly cash distributions in the amount of $0.0625 per Preferred share representing a yield on the issue price of the Preferred shares of 7.5% per annum.
Class A shares have a targeted distribution of $0.0800 per month resulting in an 12.0% yield per annum.
Redemptions
The Fund is redeemable annually in June of each year beginning in 2025 at the option of the shareholder and monthly at a discount to market price.
Click to expand Redemption Details
Redemption Deadlines:
Class A Shares and Preferred Shares may be surrendered at any time for retraction by the Fund but will be retracted only on the last day of a month (a “Valuation Date”). Shares surrendered for retraction by a holder of Class A Shares or Preferred Shares at least ten business days prior to a Valuation Date will be retracted on such Valuation Date and such shareholder will receive payment on or before the tenth business day following such Valuation Date.
Annual Retraction:
A shareholder may concurrently retract one Preferred Share and one Class A Share on the June Valuation Date of each year at a retraction price equal to the NAV per Unit on that date.
Monthly Retraction:
The monthly retraction prices for the Class A Shares will be equal to 96% of the lesser of:
- the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation; and
- the difference between (i) the Unit Market Price (as defined below) and (ii) the cost to the Fund of purchasing a Preferred Share in the market for cancellation.
The monthly retraction prices for the Preferred Shares will be equal to 96% of the lesser of:
- the difference between (i) the NAV per Unit on the applicable Valuation Date and (ii) the cost to the Fund of purchasing a Class A Share in the market for cancellation; and
- the lesser of (i) the Unit Market Price less the cost to the Fund of purchasing a Class A Share in the market for cancellation and (ii) $10.00.
For this purpose, the cost of the purchase of a Preferred Share or a Class A Share will include the purchase price of the share, commission and such other costs, if any, related to the liquidation of any portion of the Portfolio to fund the purchase of such share. Any declared and unpaid distributions payable on or before a Valuation Date in respect of Class A Shares or Preferred Shares tendered for retraction on such Valuation Date will also be paid on the retraction payment date. In addition, the following terms have the meanings set forth below.
| Class A Market Price | means the weighted average trading price of the Class A Shares on the principal stock exchange on which the Class A Shares are listed (or, if the Class A Shares are not listed on any stock exchange, on the principal market on which the Class A Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date. |
| Preferred Market Price | means the weighted average trading price of the Preferred Shares on the principal stock exchange on which the Preferred Shares are listed (or, if the Preferred Shares are not listed on any stock exchange, on the principal market on which the Preferred Shares are quoted for trading) for the 10 trading days immediately preceding the applicable Valuation Date. |
| Unit Market Price | means the sum of the Class A Market Price and the Preferred Market Price. |
Leverage
The Fund does not employ financial leverage, however Class A shares are considered to be leveraged investments by virtue of the Preferred Shares which rank ahead of the Class A for payment of distributions and proceeds on termination up to the Preferred Share par value of $10.00 per share. Positive or negative changes in the value of the total portfolio will have a greater effect on the value of the Class A shares. As the value of the portfolio increases this effect decreases and conversely as the value of the portfolio decreases, leverage increases.
Termination
The Fund is scheduled to terminate on June 30, 2029, subject to an automatic extension of the term for an additional five years. In addition, shares may be sold daily on the TSX or redeemed concurrently on an annual basis at net asset value per unit.
CUSIP ISIN
Class A Shares
CUSIP – 74061M102
ISIN - CA74061M1023
Preferred Shares
CUSIP – 74061M201
ISIN – CA74061M2013
Eligibility
RRSPs, DPSPs, RRIFs, RESPs and TFSAs
Issuer Bid
The Fund may purchase up to 10% of its outstanding units at prices up to net asset value per unit. A unit consist of one Preferred Share combined with one Class A Share.
Management Fees
The Fund pays a management fee of 1.10% of net asset value annually to Mulvihill Capital Management for acting as the Manager and the Investment Manager.
MER
The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value.
Inception Date
02/17/2004
Manager
Mulvihill Capital Management Inc.
Hedging
The Fund may hedge its U.S. dollar exposure back to the Canadian dollar at the discretion of the Manager.
Administration & Governance
Introduction
Mulvihill Capital Managent Inc. serves as the Manager and the Investment Manager of the Fund.
Manager
The Manager is responsible for providing or arranging for the provision of administrative services to the Fund including but not limited to:
- authorizing the payment of operating expenses incurred on behalf of the Fund,
- preparing financial statements and other accounting information,
- ensuring that unitholders are provided with annual and semi-annual reports and other reports as required by applicable law;
- ensuring the fund complies with regulatory requirements and applicable stock exchange listing requirements;
- providing the Trustee with information and reports as required;
- calculating and arranging for the payment of distributions;
- negotiating any contractual agreements with third-party providers of services to the Fund, including auditors, printers, registrar and transfer agent
- Overseeing and paying monthly and annual redemptions;
- Managing the issuer bid;
- Maintaining the website and ongoing communication with investors.
The Management fee payable to the Manager includes any amount payable to the Investment Manager.
Investment Manager
The Investment Manager is responsible for making all investment decisions and managing the call option writing program in accordance with the investment objectives, strategies and restrictions of the Fund. Fees for the provision of investment management services are included in the management fee.
The Investment Manager has an asset mix committee consisting of senior members of the firm. The investment process for the Fund begins at the asset mix committee. Members of this committee meet monthly to examine macro-economic variables and relationships among dominant economic factors. This process culminates in an outlook for the various capital markets around the world and provides the Fundamental basis for Mulvihill’s long-term market outlook. These views are integrated into the investment decision making process at the portfolio management level. The asset mix committee of Mulvihill oversees investment decisions made by the portfolio managers of the Fund.
Independent Review Committee
The Fund has established an Independent Review Committee (“IRC”) in accordance with National Instrument 81-107 – Independent Review Committee for Investment Funds (“NI 81-107”) which is comprised of three members who are independent of the Manager. The mandate of the IRC is to review and provide its decisions to the Manager regarding any conflict of interest matters relating to its management of the Fund that the Manager has identified and brought to the committee.
A conflict of interest matter is a situation where a reasonable person would consider the Manager or an entity related to it to have an interest that may conflict with the Manager’s ability to act in good faith and in the best interests of the Funds and Securityholders. Click here for the IRC Report to Securityholders.
Click here to review members of the IRC.
Board of Directors
The Fund has established a Board of Directors to assist the Fund in the provision of services by the Manager and the Investment Manager and to provide oversight of these activities. The Board of Directors consists of five members, three of whom are independent of the Manager and Investment Manager. The three independent members of the Board of Directors are also members of the Independent Review Committee. The Board of Directors includes an audit committee whose mandate is to review the annual and semi-annual financial statements and discuss any issues with the auditors.
Trustee and Custodian
RBC Investor & Treasury Services
Registrar and Transfer Agent
Computershare Investor Services Inc.
Legal Counsel
Osler Hoskin & Harcourt LLP
Auditors
Deloitte & Touche LLP
Financial & Regulatory
The Annual Report and the Interim Report include the Management Report on Fund Performance and the Financial Statements of the Fund.
The Fund has adopted the proxy voting guidelines with respect to the voting of proxies received by it relating to voting securities held by the Fund. The proxy guidelines establish standing policies and procedures for dealing with routine matters, as well as circumstances where deviations may occur from such standing policies. Click here for proxy guidelines.
The Fund has retained ISS Governance Services to administer and implement the proxy guidelines for the Fund. Click here to review the proxy voting record.