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ABOUT E Split Corp Class A
This company is a Canadian investment fund structured as a split share corporation. Its primary objective is to provide investors with a leveraged investment in a diversified portfolio of Canadian equity securities, primarily composed of common shares of major Canadian companies. The corporation achieves this by issuing two classes of shares: preferred shares (which receive priority payment of a fixed cumulative monthly dividend and a pre-determined redemption value at maturity) and Class A shares (which receive the remainder of the income and capital gains after the preferred shares are satisfied). The Class A shares, therefore, offer a higher potential for capital appreciation, but also carry a greater risk, as their value is tied directly to the performance of the underlying portfolio and are subordinate to the preferred shareholders' claims. The corporation's portfolio is actively managed with the goal of generating long-term capital growth. The fund's strategy involves using a combination of investment selection and a small amount of leverage inherent in the split share structure to magnify potential returns, as well as potential losses. The use of a split share structure allows the fund to create two distinct investment products for different risk appetites and investment objectives. The Class A shares appeal to investors seeking a higher risk/reward profile and a potentially higher total return, while the preferred shares attract those looking for more stable income and capital preservation.