FFN.PR.A and FTN.PR.A Hold Their Rates: 7.50% and 7.25% for Another Year
Quadravest has set the preferred share dividend rates for two of its split corporations for the fiscal year beginning December 1, 2026 — and for holders of FFN.PR.A (North American Financial 15 Split Corp) and FTN.PR.A (Financial 15 Split Corp), the answer was: no change. FFN.Pr.A holds its $0.0625 monthly rate (7.50% on the $10 redemption value) and FTN.PR.A its $0.06042 monthly rate (7.25% on $10).
The terms, side by side
| FFN.PR.A | FTN.PR.A | |
|---|---|---|
| Annual rate, FY beginning Dec 1, 2026 | 7.50% | 7.25% |
| Monthly distribution (per $10 par) | $0.0625 | $0.06042 |
| Contractual rate floor | 7.00%, to Dec 1, 2029 | 6.00%, to Dec 1, 2030 |
| Last recorded price | $10.86 | $10.83 |
| Trailing yield at that price | 6.91% | 6.70% |
| Payment frequency | Monthly | Monthly |
Both funds hold actively managed portfolios of Canadian and US financial-services companies — the familiar big-six Canadian banks alongside US names like JPMorgan, Bank of America, Citigroup, Goldman Sachs and Wells Fargo; the fund composition differs slightly (FFN's roster also includes Great-West Lifeco and Goldman Sachs Group Inc details vary by fund).
Why these aren't 5-year resets
The rate-setting is the structural curiosity worth understanding. A standard FixedReset preferred has its dividend rate set at reset dates by a formula — benchmark yield plus a fixed spread over 5-year terms. FFN.PR.A and FTN.PR.A work differently: their rates are set by agreement each fiscal year, with a contractual minimum rate that protects holders in low-rate regimes. FFN's 7.00% floor runs through the end of its term in late 2029; FTN's 6.00% floor runs through late 2030.
For a holder, the review structure cuts two ways. There is no market-based reset that automatically ratchets the coupon up when GoC-5y rises — the coupon moves only as the manager sets it. On the other hand, the floor blocks the low reset rates that hammered the FixedReset universe in the 2016–2021 era: no FFN.PR.A reset to sub-5% happened, and can't happen, because the terms don't allow it.
The premium over par
Both series trade above their $10 redemption value — $10.86 and $10.83 at our last recorded prices. That premium is the market paying up for coupons that remain above prevailing alternatives: a 7.50% annual rate is a hard coupon to replace in this market. Two different yield numbers therefore attach to the same security, and both are correct:
The gap between those two numbers is the premium over par, expressed in yield. It compresses if the market prices the coupon down toward prevailing rates; it widens when alternative yields fall.
Context: the split-corps summer
These rate reviews land a few months after a wave of capital unit splits across the sector — the structural events we covered in the summer 2026 split roundup and the earlier NAV backstop primer. The rate reviews are the quieter cousin of those events: no new money, no re-jigged classes — just the annual answer to "what will the pay rate be next year." This year, for both of these funds: the same as last.
Series pages: FFN.PR.A and FTN.PR.A.
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This article is for general information only and does not constitute financial advice. It is not investment advice and is not a recommendation to buy or sell any security. Preferred shares carry credit, interest-rate, and liquidity risk; past performance is not indicative of future results. Do your own research and consult a licensed professional before acting.