This actively managed ETF seeks to provide: (i) stable monthly cash distributions; and (ii) a stable net asset value. The ETF actively invests in a portfolio consisting of Canadian and U.S. dollar denominated corporate preferred securities, trust preferred securities and other corporate debt, with foreign currency substantially hedged to the Canadian dollar. At least 75% of the ETF’s portfolio (at the time of investment) consists of securities that are rated investment grade. The Sub-Advisor will select a portfolio of preferred investments for the ETF, giving consideration to the opportunity for income, issuer and security diversification, credit quality, and duration/interest rate sensitivity, among other factors.
Flaherty & Crumrine Incorporated: Established in 1983, Flaherty & Crumrine Incorporated specializes in US dollar denominated preferred securities and corporate debt instruments. The firm’s proprietary database, software and models were developed specifically to analyze and manage portfolios of preferred and other subordinated securities.
Summary of Investment Portfolio as at April 30, 2023
|% of Portfolio||% of Net Asset Value|
|Delphi Financial Group, 8.054% due May 15, 2037||4.3%|
|Liberty Mutual Insurance, 7.697% due October 15, 2097||3.5%|
|Metlife Inc., 10.750% due August 01, 2039||3.5%|
|HSBC Capital Funding LP, 10.176%||3.1%|
|Provident Financing TR I, 7.405% due March 15, 2038||3.0%|
|Enterprise Products Operating LP, 5.250% due August 16, 2077||2.9%|
|Partnerre Finance II, 7.287% due December 01, 2066||2.9%|
|Transcanada Pipelines Limited, 5.500% due September 15, 2079||2.4%|
|Energy Transfer LP, 7.600%||2.4%|
|Royal Bank of Canada, 4.500% due November 24, 2080||2.3%|
|Lloyds Banking Group PLC, 7.500%||2.3%|
|Enbridge Inc., 6.000% due January 15, 2077||2.3%|
|BNP Paribas, 7.375%||2.2%|
|Banco Santander, 7.500%||2.0%|
|Everest Reinsurance Holdings, 7.249% due May 15, 2037||1.9%|
|Banco Santander, 4.750%||1.8%|
|ING Groep NV, 7.500%||1.7%|
|Liberty Mutual Group, 7.800% due March 15, 2037||1.6%|
|Credit Agricole S.A., 7.875%||1.3%|
|Prudential Financial Inc., 6.750% due March 01, 2053||1.2%|
|AXIS Specialty Finance, 4.900% due January 15, 2040||1.2%|
|Barclays PLC, 8.000%||1.1%|
|DCP Midstream LLC, 5.850% due May 21, 2043||1.1%|
|UBS AG, 4.875%||1.0%|
|Lloyds Banking Group PLC, 8.000%||1.0%|
|YTD||1-Year||3-Year||Since Inception(3)||Since Inception(4)|
|Brompton Flaherty & Crumrine Investment Grade Preferred ETF - CAD Hedged||(1.6%)||(5.3%)||(0.2%)||1.2%||n.a.|
|Brompton Flaherty & Crumrine Investment Grade Preferred ETF - USD||(1.8%)||(5.8%)||(0.1%)||n.a.||0.2%|
|Brompton Flaherty & Crumrine Investment Grade Preferred ETF - CAD Hedged||(13.4%)||4.1%||5.1%||17.4%||(3.7%)(5)|
|Brompton Flaherty & Crumrine Investment Grade Preferred ETF - USD||(13.8%)||4.3%||7.9%||5.5%(6)||n.a.|
Returns for Brompton Flaherty & Crumrine Investment Grade Preferred ETF are unaudited.
Commissions, trailing commissions, management fees and expenses all may be associated with exchange-traded fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
The benchmarks from ICE Data Indices, LLC (“ICE Data”) are used with permission. ICE Data, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE Data, its affiliates nor their respective third party providers shall be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and your use is at your own risk. ICE Data, its affiliates and their respective third party suppliers do not sponsor, endorse, or recommend the Fund.
The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March. This information will also be posted on the website as soon as it is available.
This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth.
The following information is applicable to holders who, for the purposes of the Income Tax Act (Canada), are resident in Canada and hold trust units as capital property. If this is not the case, a tax advisor should be consulted.
Holders of trust units outside of a RRSP, DPSP, RRIF, RESP or TFSA should expect to receive a T3 slip from their investment dealer. T3 supplementary slips will indicate Investment Income in Box 26, Foreign Non-Business Income in Box 25, Capital Gains in Box 21 and Dividend Income in Box 23 and Box 49. Dividend income is subject to the standard gross up and federal dividend tax credit rules.
The return of capital component is a non-taxable amount that serves to reduce the adjusted cost base of the Fund units and is reported in Box 42.
|Record Date||Payment Date||Capital Gains||Eligible Dividend||Foreign Non- Business Income||Foreign Non- Business Income Tax Paid||Other Income||Return of Capital||Total Distribution|
|Jun 30, 2023||Jul 17, 2023||0.00000||0.00000||0.00000||0.00000||0.00000||0.00000||0.10417|
|May 31, 2023||Jun 14, 2023||0.00000||0.00000||0.00000||0.00000||0.00000||0.00000||0.10417|
|Apr 28, 2023||May 12, 2023||0.00000||0.00000||0.00000||0.00000||0.00000||0.00000||0.10417|
|Mar 31, 2023||Apr 17, 2023||0.00000||0.00000||0.00000||0.00000||0.00000||0.00000||0.10417|
|Feb 28, 2023||Mar 14, 2023||0.00000||0.00000||0.00000||0.00000||0.00000||0.00000||0.10417|
|Jan 31, 2023||Feb 14, 2023||0.00000||0.00000||0.00000||0.00000||0.00000||0.00000||0.10417|
|Dec 30, 2022||Jan 16, 2023||0.00000||0.00000||0.10499||(0.00304)||0.00000||0.00222||0.10417|
|Nov 30, 2022||Dec 14, 2022||0.00000||0.00000||0.10499||(0.00304)||0.00000||0.00222||0.10417|
|Oct 31, 2022||Nov 14, 2022||0.00000||0.00000||0.10499||(0.00304)||0.00000||0.00222||0.10417|
|Sep 30, 2022||Oct 17, 2022||0.00000||0.00000||0.10499||(0.00304)||0.00000||0.00222||0.10417|
|Aug 31, 2022||Sep 15, 2022||0.00000||0.00000||0.10499||(0.00304)||0.00000||0.00222||0.10417|
|Jul 29, 2022||Aug 15, 2022||0.00000||0.00000||0.10499||(0.00304)||0.00000||0.00222||0.10417|