Description

Premium Income Corporation is a split-share company that invests primarily in the common shares of Canada's six largest banks: Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Toronto-Dominion Bank, and National Bank of Canada. The fund employs a covered call writing strategy to enhance income and reduce volatility. The corporation's objectives are to provide its Preferred shareholders with fixed cumulative preferential monthly distributions and its Class A shareholders with regular monthly cash distributions, and to return the original issue price to holders of both share classes upon wind-up.