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the quadravest Financial 15 Split fund mentioned above has a similar structure to the same company's Dividend 15 split product

both products have an achilles heel, which is their option strategy

in highly volatile markets such as we are experiencing, the short close-to-the-money option strategies cause them to devour their own capital. This is the short explanation. The long explanation has been posted countless times in exhaustive threads discussing Dividend 15's inflated yield ad nauseam.

an innovation in Dividend 15 a few years ago, which increased the risk exponentially & had to be approved by shareholder vote, is that fund manager quadravest could utilize other companies plus their options than the original 15 canadian ultra-large cap dividend payors. As with many other engineered financial products, lax regulations in canada mean that managers do not have to disclose the derivative positions they are actually holding. They are still allowed to report on a representational sample basis.

as with Div 15 split, the preferred shares of Fin 15 split are likely to be safer than the class A shares, aka the common shares.
 
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