December 31, 2025
Commentary
Monthly Update
Year-to-date to December 31, the Canadian Large Cap Leaders Split Corp Class A Shares generated a total return of 35.09% and the Preferred Shares generated a total return of 7.71%. For the month, the Class A Shares generated a total return of 1.98% while the Preferred Shares generated a total return of 0.66%1.
CANADIAN LARGE CAP LEADER SPLIT CORP. - COMPOUNDED RETURNS¹ AS OF DECEMBER 31, 2025 | INCEPTION DATE: FEBRUARY 22, 2024
1M |
YTD |
3M |
6M |
1YR |
Inception |
|
|---|---|---|---|---|---|---|
Canadian Large Cap Leaders Split Corp - Class A Shares |
1.98% |
35.09% |
12.18% |
24.22% |
35.09% |
30.75% |
Canadian Large Cap Leaders Split Corp - Pref Shares |
0.66% |
7.71% |
1.87% |
3.78% |
7.71% |
7.71% |
The S&P/TSX Composite Index generated fantastic performance during 2025, closing at 31,711 on December 31, led by the Materials sector (primarily gold and precious minerals). However, the Financials and Energy sectors also performed extremely well over the past year and, with significant exposure to both sectors, the net asset value of the Canadian Large Cap Leaders Split Corp increased dramatically this past year.
In keeping with our mandate, we remain invested in a diversified portfolio of high quality, dividend-paying Canadian companies. We continue to expect that interest rates will remain low in Canada for the foreseeable future, which implies our holdings are still relatively attractive from a yield perspective. Notably, the underlying portfolio currently yields approximately 4.0%, which compares favourably to the 10-year Canadian bond yield of slightly less than 3.4% today.
Information below is specific to individual securities held in the Portfolio. It is only intended to describe key characteristics of individual holdings at a point in time and makes no inference about the return nor yield of either the Preferred Shares or the Class A Shares of the Canadian Large Cap Leaders Split Corp.
From the chart above, we can see that our positions, on average, trade at an LTM price to earnings multiple of 16.6x (excluding Brookfield Infrastructure Partners, which is typically valued on cash flow), above the 5-year average price to earnings multiple of 14.7x.
But given our view that interest rates should remain relatively low in Canada (and supported by the portfolio’s significant discount to the S&P TSX, which currently trades at about 21.5x trailing earnings, according to S&P Global), multiples still have plenty of room to expand. With the Class A Shares trading approximately 4% below the reported NAV at the close on December 31, 2025, we can adjust this table to visualize the implied valuation today:
Information below is specific to individual securities held in the Portfolio. It is only intended to describe key characteristics of individual holdings at a point in time and makes no inference about the return nor yield of either the Preferred Shares or the Class A Shares of the Canadian Large Cap Leaders Split Corp.
Although we are quite pleased that our efforts have reduced the trading discount materially, we still believe that the purchase of shares of NPS represents an attractive investment opportunity for those looking for exposure to the Canadian market. Further, we are continuing our marketing efforts and have been actively buying back stock using our NCIB to narrow the discount to NAV on the Class A Shares as much as possible.
Finally, we would like to highlight that the Canadian Large Cap Leaders Split Corp has announced its next distributions, payable on January 14, 2026, to both Class A and Preferred Shareholders of record at the close of business on December 31, 2025. As planned, holders of Class A Shares will receive the $0.12500 per share regular monthly dividend and holders of the Preferred Shares will receive the $0.18750 regular quarterly dividend.
As always, we appreciate the support of all those who have invested in the Canadian Large Cap Leaders Split Corp.
Until next month,
John, Jeff & Colin
Ninepoint Partners
1All returns are based on Net Asset Value per Class A share, or the redemption price plus accrued interest per Preferred share and assumes that distributions made by the Fund on the Class A shares, or Preferred shares in the period shown were reinvested in additional Class A shares and Preferred shares of the Fund as at 12/31/2025.