|
The Charterhouse Preferred Share Index Corporation provides holders of the Preferred Shares with:
- cost-efficient exposure to an indexed portfolio (the “Portfolio”) that is representative of the universe of fixed rate preferred shares and preferred securities of Canadian issuers ("Portfolio Securities") listed on the Toronto Stock Exchange ("TSX"); and
- return of capital distributions, paid quarterly.
To qualify for the Portfolio, a preferred share or preferred security must meet certain minimum criteria, including credit rating and issue size. Leon Frazer and Associates Inc. is the Index Administrator.
Charterhouse Preferred Share Index Corporation offers investors a number of additional key benefits:
- Attractive quarterly distributions payable in January, April, July and October of each year
- 100% of distributions are expected to be returns of capital, providing up to 10 years of tax deferral from the launch date of the fund
- The Preferred Shares have an investment grade rating, currently with an average DBRS rating of Pfd-2
- A floating rate loan facility will be utilized to provide up to 15% leverage to the Index Portfolio to enhance quarterly distributions on the Preferred Shares
- Low management fees of .45% per annum
- Excellent liquidity with annual redemption privileges available and a TSX listing (ticker: PFD.PR.A).
- Fully RRSP eligible
|
