Year End Financial Results
Toronto, January 15, 2003: Mulvihill Premium Canadian Bank (the “Company”) today announces results for the year ended October 31, 2002. Net realized income before distributions and income taxes amounted to $8.9 million or $2.24 per Unit. Net assets were $93.1 million net of distributions to shareholders in the amounts of $3.5 million for Preferred shareholders or $0.88 per Preferred Share, and $5.6 million to Class A shareholders or $1.40 per Class A share. Distributions to Class A shareholders included special distributions of $0.20 for each Class A Share in each of January and April, and $0.10 in each of July and October, 2002.
Each Unit consists of one Class A Share and one Preferred Share. Preferred Shares receive dividends at a rate of 5.75% of their par value of $15.00. The Company’s dividend policy on the Class A Shares has been set at an annual rate of $0.80 per Share, equivalent to 8% based on the Class A Shares initial public offering price of $10.00.
Mulvihill Premium Canadian Bank is a mutual fund corporation, which invests in the common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and the Toronto Dominion Bank. To generate additional returns above the dividend income earned on the portfolio, the Company will from time to write covered call options in respect of all or part of the common shares in the Portfolio. In addition, the Company may write cash covered put options in respect of securities in which the Company is permitted to invest.
The Fund’s investment portfolio is managed by its investment manager, Mulvihill Capital Management Inc. The Company’s Preferred and Class A Shares are listed on The Toronto Stock Exchange under the symbols PIC.PR.A and PIC.A.
Selected Financial Information : ($ Millions)
Mulvihill Premium Canadian Bank Fund