TORONTO, Sept. 27, 2011 /CNW/ - The Board of Directors of Lifeco Split
Corporation Inc. ("Lifeco") has declared today dividends of $0.3684 per
Preferred Share and $0.065 per Capital Share payable on October 31,
2011 to holders of record at the close of business on October 24, 2011.
Holders of Preferred Shares are entitled to receive quarterly fixed
cumulative dividends equal to $0.3684 per Preferred Share representing
a yield of 4% on the redemption price of $36.84. The Company's Capital
Share dividend policy is to pay a quarterly dividend on the Capital
Shares if the downside asset coverage on the Preferred Shares is
greater than or equal to 1.3 times during the quarter. Providing this
criteria is met, the Company's policy is to pay holders of Capital
Shares quarterly dividends in an amount equal to the dividends received
on the underlying portfolio securities minus the distributions payable
on the Preferred Shares and all administrative and operating expenses.
Lifeco is a mutual fund corporation created to hold a portfolio of
common shares of selected publicly listed Canadian life insurance
companies. Lifeco will generate a fixed quarterly dividend for the
Preferred shareholders and provide the Capital shareholders with a
leveraged investment, the value of which is linked to changes in the
market price of the portfolio shares.
Capital Shares and Preferred Shares of Lifeco are listed for trading on
The Toronto Stock Exchange under the symbols LSC and LSC.PR.C
SOURCE Lifeco Split Corporation Inc.
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Lifeco Split Corporation Inc.