TORONTO, ONTARIO–(Marketwired – Aug. 26, 2016) – Global Champions Split Corp. (“Global Champions” or the “Company”) (TSX:GCS.PR.A) announced today that its net assets per unit, as determined for financial reporting purposes, was $55.82 at June 30, 2016.
Portfolio securities and net assets totaled $117 million and $74 million, respectively, as at June 30, 2016 compared to $108 million and $65 million as at December 31, 2014. The increase in net assets was driven by increases in the fair value of the Company’s portfolio. Net assets per unit consists of one preferred share and one capital share. The net asset value per unit, as determined for retraction purposes, is posted daily on our website at www.globalchampions.com.
STATEMENT OF COMPREHENSIVE INCOME
| As at June 20, 2016, and December 31, 2015, and for the six months ended June 30 (Thousands) |
2016 | 2015 | |||||
| Income | |||||||
| Dividend income | $ | 2,016 | $ | 1,869 | |||
| Other investment income | (119 | ) | (75 | ) | |||
| 1,897 | 1,794 | ||||||
| Expenses | |||||||
| Management fees | 21 | 23 | |||||
| Operating costs | 100 | 95 | |||||
| Current income taxes on net investment income | 702 | 662 | |||||
| 823 | 780 | ||||||
| Income available for distribution | 1,074 | 1,014 | |||||
| Distributions paid on preferred shares | (771 | ) | (794 | ) | |||
| Income available for distribution to capital shares | 303 | 220 | |||||
| Amortization of share issuance costs | (136 | ) | (139 | ) | |||
| Current income taxes on realized investments and derivatives | (435 | ) | (1,237 | ) | |||
| Deferred income taxes | (1,042 | ) | 2,252 | ||||
| Realized gain on sale of investments | – | 2,107 | |||||
| Change in unrealized value of investments | 11,549 | (2,885 | ) | ||||
| Change in realized and unrealized value of foreign currency derivatives | 2,986 | (3,039 | ) | ||||
| Unrealized foreign exchange (loss) gain | (4,477 | ) | 3,937 | ||||
| Comprehensive income | $ | 8,748 | $ | 1,216 | |||
| Net assets | $ | 73,790 | $ | 65,042 | |||
Global Champions Split Corp. is an investment fund established under the laws of the Province of Ontario to invest in a diversified portfolio of large capitalization companies that its manager, Brookfield Investment Management (Canada) Inc. (“BIM Canada”), believes are best-in-class within their respective industries. The Company is capitalized with public preferred shares (TSX:GCS.PR.A) and private capital shares.
BIM Canada is a subsidiary of Brookfield Asset Management Inc., a global alternative asset manager with over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity.
FORWARD-LOOKING INFORMATION
This news release contains forward-looking information concerning the Company’s business and operations. The words “intend,” “believe,” “principally,” “primarily,” “likely,” “often,” “generally” and other expressions of similar import, or the negative variations thereof, and similar expressions of future or conditional verbs such as “could,” “should,” “would,” “may” or “will,” are predictions of or indicate future events, trends or prospects or identify forward-looking information. Forward-looking information in this news release includes, among others, statements with respect to the Company’s objective of investing in a diversified portfolio (the “Portfolio”) of large capitalization companies that Brookfield Investment Management (Canada) Inc. (the “Manager”) believes are best in class within their respective industries to generate cash dividends to fund quarterly fixed cumulative preferential dividends for the holders of the Company’s preferred shares and to enable holders of its capital shares to participate in any capital appreciation of the Portfolio, fluctuations in the market value of units of the Company due to interest rate levels and the value of the Portfolio. Additional forward-looking information may also include fluctuations in the value of the Company’s Portfolio and cash flows due to foreign currency exchange rates.
Although the Company believes that the anticipated future results or achievements expressed or implied by the forward-looking information and statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on the forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking information and statements.
Factors that could cause actual results to differ materially from those contemplated or implied by the forward-looking information include: the behavior of financial markets, including fluctuations in the value of the Portfolio and interest and exchange rates, availability of financings and other risks and factors detailed from time to time in the Company’s other documents filed with the Canadian securities regulators.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as may be required by law, the Company undertakes no obligation to publicly update or revise any forward-looking information or statements, whether written or oral, that may be as a result of new information, future events or otherwise. Reference should be made to the Company’s prospectus with respect to the Class A Preferred Shares, Series 1 for a description of the major risk factors.
ir@pvii.ca
647-503-6516