CORESHARES Preftrax tracks the performance of the FTSE/JSE Preference Share Index which consists of non-convertible, floating rate perpetual preference shares.
Benefits to the investor:
- Preference shares dividends are required to be paid out before ordinary dividends are paid out
- Preference shares pay a tax efficient dividend yield
- The dividend is generally higher than general equity. Dividends are contractual and calculated as a percentage of the prime lending rate