Press Release
Year End Financial Results
(For Release 4 p.m.
EDT, June 26 ,2000)
Toronto, June 26, 2000: MCM Split Share Corp. (the "Company") announces results for the year ended January 31, 2000. Net income before distributions amounted to $13.4 million or $3.34 per Unit. Net asset value per Class A Share increased from $12.77 to $14.61. Distributions to shareholders in the year amounted to $3.8 million to preferred shareholders or $0.8586 per preferred share, and $7.9 million to Class A shareholders or $1.80 per Class A share which included special distributions of $0.10 and $0.50 per unit, in July 1999 and January 2000, respectively.
Each Unit consists of one Class A share and one preferred share. Preferred shares receive dividends at a rate of 5.5% of their par value of $15.00. The Companyıs dividend policy on the Class A Shares has been set at a rate of $1.20 per Share, equivalent to 8% based on the Class A Shares initial public offering price of $15.00.
The Company is a mutual fund corporation which invests its net assets in a diversified portfolio consisting principally of common shares issued by some or all of a group selected from the TSE 300 Index. In order to meet its investment objectives, the Company may, from time to time invest up to 20% of the cost amount of its assets in common shares issued by corporations selected from the Standard & Poor's 100 Index. To generate additional returns above the dividend income earned on the portfolio, the Company will from time to time, write covered call options in respect of all or part of the common shares in the Portfolio. In addition, the Company may write cash covered put options in respect of securities in which the Company is permitted to invest.
The Companyıs investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The Companyıs preferred and Class A shares are listed on The Toronto Stock Exchange under the symbols MUH.PR.A and MUH.A.
Selected Financial
Information:
($ millions)
| Statement of Net Assets | ||
| Assets | $ 127.6 | |
| Liabilities | 68.7 | |
| Net
Assets (Unitholders Equity) |
$ 58.9 | |
| Statement of Financial Operations | ||
| Revenue | $ 3.4 | |
| Expenses | 1.8 | |
| Net Investment Income | 1.6 | |
| Net Realized Gains | 11.8 | |
| Net Income Before Distributions | $ 13.4 | |
For further
information, contact:
John Mulvihill, President & CEO, Mulvihill Capital Management
Donald Biggs, Vice President, Mulvihill Capital Management
MCM
Split Share Corp.
121 King Street West, Suite 2600
Toronto, Ontario M5H 3T9
(416) 681-3966 (800) 725-7172
premium@mulvihill.com
www.mulvihill.com
