Mulvihill: Premium Income Corporation (PIC.PR.A)

October 7, 2022

Stocks to Invest in: PIC.PR.A

The Fund is a split share corporation designed to provide investors with exposure to six Canadian banks and utilizes Mulvihill Capital's proprietary covered call writing strategy to enhance the income generated by the portfolio and to reduce volatility.

The Fund’s investment objectives are:

  • To provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions in the amount of $0.215625 per Preferred share representing a yield on the issue price of the Preferred shares of 5.75% per annum; and
  • to provide holders of Class A Shares with quarterly cash distributions equal to the amount, if any, by which the net realized capital gains, dividends and option premiums (other than option premiums in respect of options outstanding at year-end) earned on the Fund’s portfolio in any year, net of expenses and loss carry forwards, exceed the amount of the distributions paid on the Preferred Shares; and
  • to return the original issue price to holders of both preferred share and Class A shares upon wind-up of the Fund.

For more information on Mulvihill ETFs (TSX: PIC.PR.A) please click on the request investor info button.

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