Split Yield Corporation

Split Yield Corporation

April 27, 2009 11:40 ET

Split Yield Corporation: Financial Results for the Year Ending January 31, 2009

TORONTO, ONTARIO--(Marketwire - April 27, 2009) - Split Yield Corporation ("Split Yield") reports financial results for the year ending January 31, 2009.

By the end of 2008, the cumulative impact of the deterioration in financial and economic conditions created record lows in business, investor and consumer confidence and resulted in recessionary conditions throughout the world. In addition, the de-leveraging of hedge funds and other similar funds during the final months exacerbated market volatility and losses in financial markets. Market indices experienced declines not seen since the Great Depression of the 1930s. In North America, declines of -30.35% and -22.83% respectively for the S&P TSX 60 index and S&P 100 index for the year ending January 31, 2009 evidenced the deterioration of financial and economic conditions. Throughout this difficult environment, the holdings in the portfolio have been negatively impacted resulting in a decline in the net assets to $15.23 per unit.

Class I Preferred shareholders received their regular distributions of $1.10 per share during the year. Class II preferred shareholders received only the April quarterly dividend of $0.2625 per share as a result of the Company suspending the payment of Class II dividends effective July 2008. This decision was made in order to help preserve cash and assist in rebuilding the net asset value in an attempt to meet its objectives in the longer term. 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 year.

Selected Financial Information from the Statement of Operations:
For the year ending January 31, 2009

($ Millions)

Income 1.141

Expenses (0.471)

Net investment income 0.670

Realized option premiums and gain (loss) on sale of investments (2.609)

Change in unrealized depreciation of investments (11.544)

Decrease in net assets from operations before distributions (13.483)

Comparative financial information is available in documents filed on

Split Yield Corporation is an actively managed mutual fund corporation that invests primarily in common shares of companies included in the S&P/TSX 60 Index and the S&P 100 Index. To generate additional returns above the dividend income earned in the portfolio, the Corporation will from time to time write covered call options in respect to all or part of the common shares in the portfolio.

Contact Information

  • Split Yield Corporation
    Investor Relations
    416-304-4443, toll free at 1-877-4-Quadra (1-877-478-2372)