Q: I would be interested in your opinion on this investment, and the appropriateness of holding in a non-reg account for income with a reasonable level of capital protection for a retiree but not necessarily requiring the income to live on.
5i Research Answer:
We are not big fans of split share Class A shares, but our caution on them is because the preferred shares have so much more protection than they do. Thus, we like the preferred shares much more. If net asset value drops too much, Class A dividends stop to protect the preferred shares. We would be comfortable owning DFN preferreds for conservative income investors.