Canadian Large Cap Leaders Split Corp. - Class A

Canadian Large Cap Leaders Split Corp.

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NPS
(TSX)
Canadian Large Cap Leaders Split Corp.

Overview

Canadian Large Cap Leaders Split Corp. (the “Company”) invests in an approximately equally-weighted portfolio of Equity Securities of Canadian Dividend Growth Companies with market caps of at least $10 billion. 

The Company splits the dividends and growth components of this portfolio into two separate investment vehicles, or share classes: Preferred Shares and Class A Shares.

  • Tax Efficiency

    Tax Efficiency

    Preferred Share Investors may enjoy the benefit of higher after-tax returns vs. investors earning non-qualified income from investments that generate interest income from savings accounts or fixed income instruments.

  • Built-In Leverage

    Built-In Leverage

    Growth Investors can use Class A Shares to enhance their return potential through the built-in leverage created by the Split Corp’s structure where all of the capital appreciation in the underlying portfolio of stocks accrues to Class A shares. This produces leverage without the typical costs associated with borrowing capital at prevailing interest rates. (See Split Share Primer below for more information.)

Fund Objective

Class A Shares

The investment objectives for the Class A Shares are to provide their holders with regular monthly non-cumulative cash distributions targeted to be $0.125 per Class A Share representing a yield on the issue price of the Class A Shares of 10% per annum on the issue price of $15.00 per Class A Share and to provide holders with the opportunity for growth in the Net Asset Value per Class A Share.

Preferred Shares

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.1875 per Preferred Share ($0.75 per annum or 7.5% per annum on the issue price of $10.00 per Preferred Share) until February 28, 2029, subject to extension for successive terms of up to five years as determined by the Company’s Board of Directors (the “Maturity Date”), and to return the original issue price of $10.00 to holders on the Maturity Date.

Investment Team

  • John Wilson, MBA
    Co-CEO, Managing Partner, Senior Portfolio Manager
    John Wilson, MBA
    Co-CEO, Managing Partner, Senior Portfolio Manager
    John Wilson is a founding principal, Co-CEO and Managing Partner of Ninepoint Partners. John oversees all aspects of the firm’s investment and research initiatives. Prior to Ninepoint’s formation, he was CEO, CO-CIO and Senior Portfolio Manager at Sprott Asset Management (SAM). Previous to SAM, he was Chief Investment Officer at Cumberland Private Wealth Management, founder and CEO of DDX Capital Partners, an alternative investment management firm; was Managing Director at RBC Capital Markets...
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  • Jeff Sayer, MBA, CFA
    Vice President, Portfolio Manager
    Jeff Sayer, MBA, CFA
    Vice President, Portfolio Manager
    Jeffrey Sayer is Vice President, Portfolio Manager at Ninepoint Partners. Jeff oversees Global Equity, Infrastructure, and Real Estate investment strategies for the firm. Prior to Ninepoint’s formation, Jeff was with Sprott Asset Management (SAM), rounding out more than 20 years of investment management experience.  Jeff received his MBA from the Schulich School of Business at York University and was awarded his CFA designation in 2004.
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  • Colin Watson
    Vice President, Portfolio Manager
    Colin Watson
    Vice President, Portfolio Manager
    Colin Watson's background spans across equities, asset allocation & derivative-based strategies. Prior to Ninepoint Partners, Colin worked as a Portfolio Manager at IMCO on a team responsible for overseeing IMCO’s $26B public equity allocation and deploying derivatives-based strategies for IMCO’s public asset allocation strategy. Prior to IMCO, Colin worked at Ninepoint Partners on equity selection & options-based overlays. Colin holds a Bachelor of Commerce Degree from McMaster Unive...
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  • Max Barrow
    Analyst
    Max Barrow
    Analyst
    Max Barrow is an Analyst focused on Ninepoint Partner’s equity portfolios. He works directly with the Global Dividend, Global Infrastructure, Canadian Large Cap Leaders Split Corp., and Capital Appreciation Funds. Max joined the firm as an intern in April of 2023 and returned as a full-time Analyst in July of 2024. Prior to joining Ninepoint, he has had experience in the Private Wealth Management industry at CIBC Wood Gundy, servicing high net-worth households.  Max holds a bachelor’s de...
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Performance

Distributions

Distribution Per Unit

Distribution Frequency

Total Distributions

Record Date

Class A

$0.125000

Monthly

$0.875000

9/30/2024

Preferred Shares

 

$0.187500

Quarterly

$0.454480

9/30/2024

Portfolio

As at 8/30/2024

Sector Allocation

Sector Weight %
Financials 51.70
Energy 30.06
Utilities 10.11
Communication 9.93
Cash and Cash Equivalents -1.81

Geographic Allocation

Sector Weight %
Canada 101.81

Top Ten Holdings

Issuer Name
Canadian Imperial Bank Of Commerce
Canadian Natural Resources Ltd
Enbridge Inc
Fortis Inc
Manulife Financial Corp
Royal Bank Of Canada
Sun Life Financial Inc
Suncor Energy Inc
Telus Corporation
Toronto-Dominion Bank/The

Facts, Fees & Fund Codes

Facts
Inception Date
February 22, 2024
Issue Price
$15 per Class A Share
$10 per Preferred Share
Registered Tax Plan Status
Eligible
††Distribution Target
10.0% for Class A Share‡
7.5% for Preferred Share‡
Monthly Distribution
(Class A Share):
$0.125
Quarterly Distribution
(Preferred Share):
$0.1875
Performance Fee 
-
DRIP
Eligible - Class A Share
Credit Rating
Pfd-3 (high)
Currency
CAD
Maturity Date 
February 28, 2029
Valuations
Daily
CUSIP - Class A Share
13625G102 (TSX)
CUSIP - Preferred Share
13625G201 (TSX)
‡If the total return on the Portfolio is less than the amount necessary to fund the targeted distributions for the Class A Shares and the Preferred Shares and all expenses of the Company, and if the Company chooses to nevertheless ensure that such distributions are paid to Shareholders, this will result in a portion of the distributions paid to Shareholders being a return of the capital of the Company back to Shareholders, and accordingly, NAV per Unit will be reduced. There can be no assurance that the Company will be able to pay distributions to the holders of Preferred Shares or Class A Shares.
Fees
Management Fee 
0.75%
Fund Codes
Class A * NPS
Preferred Shares * NPS.PR.A
*Exchange: Toronto Stock Exchange (TSX)

Education

Canadian Large Cap Leaders Split Corp. Overview
Split Share Corp. Primer

Documents

Related Alt Thinking

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The monthly distribution amount may be adjusted by the Manager without notice throughout the year as market conditions change. Monthly distributions will be comprised of net income, net realized capital gains and/or return of capital. Any net income and/or net realized capital gains earned by the Fund in excess of the monthly distribution will be distributed to unitholders annually in December. The target monthly distribution amount is calculated at the beginning of each taxation year as approximately 4.5% of the net asset value per Series A, Series F, Series I and Series D security as at December 31 of the prior year.

The Fund is generally exposed to the following risks: See the prospectus of the Company for a description of these risks: No Assurances on Achieving Objectives, Concentration Risk, Risk Related to Passive Investments, Performance of the Portfolio Issuers and Other Considerations, Greater Volatility of the Class A Shares, Equity Risk, COVID-19, Market Volatility, Market Disruptions, Recent and Future Global Financial Developments, Sensitivity to Interest Rates, Changes in Credit Rating, Reliance on the Manager and the Portfolio Manager, Conflicts of Interest, Use of Options and Other Derivative Instruments, Securities Lending, Sensitivity to Volatility Levels, Taxation, Significant Retractions, Loss of Investment, non-concurrent Retraction, Changes in Legislation and Regulatory Risk, Lack of Operating History, Cybersecurity Risk.

Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Important information about these Funds, including their investment objectives and strategies, purchase options, and applicable management fees, performance fees (if any), and expenses, is contained in their prospectus. Please read the prospectus carefully before investing. Commissions, trailing commissions, management fees, performance fees, other charges and expenses all may be associated with investing in the Funds. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds. 

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

Ninepoint Partners LP: Toll Free: 1.866.299.9906. Dealer Services: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540