CLSA
BROMPTON SPLIT CORP ENHANCED EQUITY INCOME
stock TSE

Thank you for the detailed concise response!. Are you interested in CLSA?

TLDR: There are expense ratios attached to the underlying mutual funds CLSA holds because, in creating those mutual funds, there were their "sister funds" which are entitled to dividends before them. The mutual funds CLSA holds have to make sure the "sister funds" receive their dividends, like an expense to the funds.

CLSA is a fund of funds. The underlying assets are mutual funds. The asset pool of the mutual funds holds the individual stocks, but the fund creation mechanism created different mutual funds: Preferred (safer dividend generation vehicle with no growth potential) and Class A (CLSA's holding, higher risk for leveraged growth). This mechanism is exactly like CLO. The Class A will protect the preferred from losses as much as possible. The Preferred will claim dividends before the Class A. Any remaining dividends + all price appreciation go to Class A. Canadian regulators require funds to disclose the portion of dividends to the preferred as the MER of the Class A. It's reflected in the CLSA price.

Thank you for the detailed concise response!. Are you interested in CLSA?

TLDR: There are expense ratios attached to the underlying mutual funds CLSA holds because, in creating those mutual funds, there were their "sister funds" which are entitled to dividends before them. The mutual funds CLSA holds have to make sure the "sister funds" receive their dividends, like an expense to the funds.

CLSA is a fund of funds. The underlying assets are mutual funds. The asset pool of the mutual funds holds the individual stocks, but the fund creation mechanism created different mutual funds: Preferred (safer dividend generation vehicle with no growth potential) and Class A (CLSA's holding, higher risk for leveraged growth). This mechanism is exactly like CLO. The Class A will protect the preferred from losses as much as possible. The Preferred will claim dividends before the Class A. Any remaining dividends + all price appreciation go to Class A. Canadian regulators require funds to disclose the portion of dividends to the preferred as the MER of the Class A. It's reflected in the CLSA price.