Split Yield Corporation
TSX : YLD.PR.A
TSX : YLD
TSX : YLD.PR.B

Split Yield Corporation

September 28, 2005 12:32 ET

Split Yield Corporation: Financial Results For The Six Months Ending July 31, 2005

TORONTO, ONTARIO--(CCNMatthews - Sept. 28, 2005) - Split Yield Corporation ("Split Yield")(TSX:YLD)(TSX:YLD.PR.A)(TSX:YLD.PR.B) reports financial results for the six months ending July 31, 2005.

The net asset value per unit (1 Class I Preferred share, 1 Class II Preferred Share and 1 Capital share) was $30.65 (after distributions) as at July 31, 2005.

Class I Preferred shareholders and Class II Preferred shareholders received their regular dividends of $0.55 and $0.525 respectively during the six months. Capital shareholders did not receive a distribution under the variable distribution program due to the overall level of net assets and realized income during the period. Since inception of Split Yield in April 1998 to July 31, 2005, Class I Preferred Shareholders have received a total of $8.02 per share in dividends, Class II Preferred Shareholders have received a total of $7.65 per share and Capital Shareholders have received a total of $7.25 per share.

Split Yield is an actively managed mutual fund corporation that invests in common shares of companies included in the S&P/TSX 60 Index and the S&P 100 Index. In order to generate additional returns above the dividend income earned on the Portfolio, the company writes covered call options on all or part of the common shares in the portfolio. Quadravest Capital Management Inc. manages Split Yield's portfolio.

A unit of Split Yield is comprised of one Class I Preferred Share, one Class II Preferred Share and one Capital Share. The holders of Class I Preferred Shares are entitled to receive $1.10 per share or 5.50% annually based on the initial issue price. The holders of Class II Preferred Shares are entitled to receive $1.05 per share or 7.0% annually based on the initial issue price. Holders of Capital Shares are entitled to receive quarterly distributions from net realized gains and other investment income, after the payment of distributions to Class I and Class II preferred shareholders.



Selected Financial Information from the Annual Statement of Financial
Operations:

For the six months ending July 31 ($ millions)

2005 2004
$ $

Income 0.515 0.396

Expenses 0.330 0.330
-------- --------
Net investment income 0.185 0.066

Realized option premiums and gain on
sale of investments (0.170) 0.887

Change in unrealized appreciation of
investments 1.385 (3.398)
-------- --------
Increase (decrease) in net assets from
operations before distributions 1.400 (2.445)



Contact Information

  • Quadravest Capital Management
    Wayne Finch
    Chairman and Chief Investment Officer
    (416) 304-4443
    or
    Quadravest Capital Management
    Laura Johnson
    Vice President
    (416) 304-4443
    or
    Quadravest Capital Management
    Peter Cruickshank
    Chief Financial Officer
    (416) 304-4443
    info@quadravest.com
    www.quadravest.com