OVERVIEW
CORE HOLDINGS
Canadian Banc Corp. is a high quality portfolio consisting of six Canadian Banks. The portfolio shares offer an attractive dividend yield, continued earnings growth and have a strong history of capital appreciation.
The company offers two classes of securities a Preferred share (BK.PR.A) and a Class A share (BK).
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To view a Split Share Fund overview please click here.
Bank of Montreal
Bank of Nova Scotia
Canadian Imperial Bank of Commerce
National Bank of Canada
Royal Bank of Canada
Toronto-Dominion Bank
Shares held within the Portfolio are expected to range between 5-20% in weight but may vary from time to time. Top holdings by weight may include holdings other than the core holdings as up to 20% of the net asset value may be invested in equity securities of Canadian or foreign financial services corporations other than the core holdings (as per the Prospectus).
OBJECTIVES
SHARE HIGHLIGHTS
Preferred Shares:
(i) to provide holders of the Preferred Shares with cumulative preferential floating rate monthly cash dividends at an annual rate equal to Prime Rate plus 1.50%, (min 5%, max 8%) based on $10 redemption value, and;
(ii) to pay the holders of the Preferred Shares the $10 redemption value on or about the termination date of December 1, 2028 (subject to further 5 year extensions thereafter).
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Class A Shares:
(i) to provide holders of the Class A Shares with regular monthly cash distributions currently targeted to be at a rate of 15% annualized based on the volume weighted average market price of the Class A shares for last 3 trading days of the preceding month, and;
(ii) to pay the holders of Class A Shares on the termination date of December 1, 2028 (subject to further 5 year extensions thereafter) at least the original issue price of those shares.
​Preferred Shares:
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Cumulative monthly dividends*
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Quality investment in Canadian Banking sector
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Strong downside protection and asset coverage
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Pfd-3 (low) DBRS Rating - Nov 16/23
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Attractive Yield
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Non-Callable
Class A Shares:
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Monthly cash distributions*
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Quality investment in Canadian Banking sector
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Capital appreciation potential
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Attractive alternative to other income vehicles
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Tax efficient distributions
*For the purposes of the Income Tax Act (Canada) and any similar provincial legislation, the Company designates any and all dividends paid on both its Class A and Preferred shares as “eligible dividends” unless the Company indicates otherwise.
TOP HOLDINGS
VALUATION
Holdings Sorted by weight as at May 31, 2024
Royal Bank of Canada
National Bank of Canada
Toronto-Dominion Bank
Bank of Montreal
Canadian Imperial Bank of Commerce
JPMorgan Chase & Co
June 14, 2024
NAV Pre-Distribution: $19.67
Distribution: $0.00
NAV Net of Distribution: $19.67
NAV + Total Distributions Paid to Date: $52.21