Canadian Life Companies Split Corp.
TSX : LFE
TSX : LFE.PR.A

Canadian Life Companies Split Corp.

July 27, 2005 11:59 ET

Canadian Life Companies Split Corp.: Financial Results to May 31, 2005

TORONTO, ONTARIO--(CCNMatthews - July 27, 2005) - Canadian Life Companies Split Corp. ("CLC Split") (TSX:LFE)(TSX:LFE.PR.A) announces its semi-annual financial results for the initial period April 18, 2005 to May 31, 2005.

The major investment activity during this initial six week period was to invest the proceeds of the offering in the core four Canadian life insurance stocks - Manulife Financial, Great-West Lifeco Inc., Sun Life Financial and Industrial Alliance Life Insurance Co. During the period, CLC Split made distributions at the targeted rate for both the Preferred and Class A shares. The net asset value per unit (one Preferred Share and one Class A share) was $23.77 (after all distributions paid) as at May 31, 2005.



The fund's investment objectives are:

Preferred Shares:
i. to provide holders of the Preferred Shares with fixed, cumulative
preferential monthly cash dividends in the amount of $0.04375 per
Preferred Share to yield 5.25% per annum on the original issue
price; and
ii. on or about December 1, 2012 (termination date), to pay the
holders of the Preferred Shares the original issue price of those
shares.

Class A Shares:
i. to provide holders of the Class A Shares with regular monthly
cash dividends initially targeted to be $0.10 per Class A Share
to yield 8.0% per annum on the original issue price; and
ii. on or about December 1, 2012 (termination date), to pay the
holders of Class A Shares at least the original issue price of
those shares.

CLC Split invests primarily in a core portfolio of four publicly
traded Canadian life insurance companies as follows:
Great-West Life, Industrial Alliance, Manulife Financial and Sun Life
Financial. Shares held within the portfolio are expected to range
between 10-30% in weight but may vary at any time. A limited covered
call writing program is also employed to provide supplementary income
to the portfolio.

Selected Financial Information from the Semi-Annual Statement of
Financial Operations:
For the period April 18 to May 31 ($ millions)

2005
Income .797
Expenses (.228)
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Net investment income .569
Realized option premiums and gain on sale of investments .031
Change in unrealized appreciation of investments 1.287
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Increase (decrease) in net assets from
operations before distributions 1.887


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