OVERVIEW
CORE HOLDINGS
North American Financial 15 Split Corporation is a high quality portfolio consisting of 15 financial services companies made up of Canadian and U.S. issuers. The portfolio shares have demonstrated a record of above-average long-term share performance and dividend growth. Financial Services companies are expected to benefit from a growing economic and capital markets recovery, earnings growth momentum and continued consolidation trends within the industry.
The Corporation offers two types of shares, a Class A (FFN) and a Preferred (FFN.PR.A).
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To view a Split Share Fund overview please click here.
Bank of America Corporation
Bank of Montreal
Bank of Nova Scotia
Canadian Imperial Bank of Commerce
CI Financial Corp.
Citigroup Inc.
The Goldman Sachs Group, Inc.
Great-West Lifeco Inc.
JP Morgan Chase & Co.
Manulife Financial Corporation
National Bank of Canada
Royal Bank of Canada
Sun Life Financial Inc.
The Toronto-Dominion Bank
Wells Fargo & Company
Shares held within the Portfolio are expected to range between 4-8% in weight but may vary from time to time. Top holdings by weight may include holdings other than the core holdings as 15% of the net asset value may be invested in equity securities other than the core holdings (as per the Prospectus).
OBJECTIVES
SHARE HIGHLIGHTS
Preferred Shares:
(i) to provide holders of Preferred Shares with cumulative preferential monthly cash dividends currently in the amount of 9.50% annually, to be set by the Board of Directors annually and subject to a minimum of 5.50% until 2024; and
(ii) on or about the termination date of December 1, 2029 (subject to further 5 year extensions thereafter), to pay the holders of the Preferred Shares $10 per Preferred Share.
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Class A Shares:
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(i) to provide holders of Class A Shares with regular monthly cash distributions in an amount to be determined by the Board of Directors; and
(ii) to permit holders to participate in all growth in the net asset value of the Company above $10 per Unit, by paying holders on or about the termination date of December 1, 2029 (subject to further 5 year extensions thereafter) such amounts as remain in the Company after paying $10 per Preferred Share.
​Preferred Shares:
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Fixed cumulative monthly dividends*
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Potential for higher monthly dividends annually/5 year minimum
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Quality investments and diversification
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Strong downside protection and asset coverage
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Pfd-4 DBRS Rating - February 2024
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Competitive Yield
Class A Shares:
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Monthly cash dividends*
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Quality investments and diversification
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Leverage to performance of high quality stocks
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Capital appreciation potential
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Attractive alternative to other income vehicles
*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 March 28, 2024
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JPMorgan Chase & Co
Goldman Sachs Group Inc
Wells Fargo & Co
Bank of America Corp
Royal Bank of Canada
Citigroup Inc
Morgan Stanley
Sun Life Financial Inc
Manulife Financial Corp
Toronto-Dominion Bank
Canadian Imperial Bank of Commerce
Bank of Montreal
National Bank of Canada
Bank of Nova Scotia
US Bancorp
April 15, 2024
NAV Pre-Distribution: $15.35
Distribution: $0.00
NAV Net of Distribution: $15.35
NAV + Total Distributions Paid to Date: $42.60