Brompton was founded in 2000 by Peter Braaten, Raymond Pether and Mark Caranci to provide innovative, income-oriented, alternative investment solutions for individual investors in Canada. At that time, they brought over 45 years of collective experience in alternative investment, banking and corporate management. In 2005, Chris Hoffmann joined as a partner after 20 years as both a corporate lawyer and as an investment executive. Ray, Chris and Mark are still actively involved in the business and Peter served as Chairman until his passing in 2014.
Brompton has a long, successful track record of delivering well-conceived alternative investments that are focused on providing investors with a meaningful level of regular distributions. Interest rates have been steadily declining for over 40 years and we have been in an extremely low interest rate environment for over a decade, and investors struggle to find suitable investments that generate sufficient income to meet their cash flow needs. Our funds are designed to address investors’ cash flow requirements and to provide them with value-added diversification strategies. Since inception, Brompton has paid out over $3.0 billion in distributions. For those investors that do not require the regular cash flow, our funds also offer commission-free distribution reinvestment plans for additional units in the funds. Of course, no investment will be successful over the long run if you pay too much for it. For the level of service provided, our funds are known for their low management fees and costs.
Our active equity strategies consider ESG factors as part of our selection of securities. Our goal is to deliver superior risk-adjusted returns while considering ESG scores of our underlying investments. The ESG Score is an overall score of a company as determined by an independent consultant based on reported information in the environment, social and corporate governance pillars. Our ESG ratings are available on our website and in our marketing materials.
Brompton’s investment solutions include:
Our ETFs provide investors income and, for our equity ETFs, growth potential through exposure to actively managed portfolios of global equities and/or of equities of specific high growth industries. Our equity ETFs employ active covered call strategies to increase portfolio income and to lower portfolio volatility. Our fixed income strategies are actively managed and focus on alternative fixed income asset classes with proven track records that are not easily available in Canada.
Brompton’s split share funds provide investors with two ways to invest in diversified portfolios of blue-chip corporations with a proven track record of regular dividend growth. In addition, we employ our proprietary active covered call strategy to generate additional income for the fund. Each split share fund is comprised of two separate classes of shares that trade on the TSX – a preferred share and a Class A share. Each security is designed to accomplish a different investment objective.
Preferred shares are designed to provide stable, secure quarterly dividend income. Each series of preferred shares has its own rating and pays a quarterly distribution. Brompton’s preferred shares have delivered long term consistency both in income and price stability.
Class A shares are more volatile and provide higher distributions with the opportunity for leveraged capital appreciation. As long as the fund’s portfolio is valued above the redemption price of the preferred shares, all increases in value of the entire portfolio accrues to the Class A share.
Our other TSX traded funds generate high monthly distributions from alternative asset classes, using best-in-class active portfolio managers in both the equity and income markets. Our floating and fixed income funds also employ financial leverage in their strategies to enhance the income potential of a low volatility portfolio. These unique structures allow active managers to make investment decisions without being influenced by daily redemptions or subscriptions, like an ETF or mutual fund. It also allows our active managers to use varying leverage amounts, in various market environments, in conjunction with their views on market opportunities.
Our team is committed to providing a superior client service experience and we regularly offer our views on industry trends and product developments. Most importantly, we are always ready and available to meet with advisors and speak with investors. We invite you to review our investment solutions to see how we might be able to improve your portfolio and to contact us if we can help you in any way.
Brompton adheres to high standards of business practice to ensure the best interests of its investors are protected.
Brompton provides for independent oversight for each fund through the Independent Review Committee and has adopted the recommended guidelines for corporate governance. Brompton incorporates provisions into each of its funds that protect the rights of its investors.
The Independent Review Committee (IRC) is comprised of a minimum of three members, each of whom must be independent of the Funds, the Manager and any affiliate companies of the Manager. The function of the IRC is to provide decisions on conflict of interest matters that the Manager has referred to the IRC and provide oversight on any conflict issues that IRC members identify in their own right. The IRC is invited to attend all board meetings and has access to management at all times.
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The experience, track record and integrity of its people are Brompton’s most valuable asset.