Brompton Flaherty & Crumrine Investment Grade Preferred ETF
Invest Now- Closing Price (Oct 21, 2019) $26.60
- Distribution $0.10417
- Distribution Rate (Oct 22, 2019) 4.77%
- Distribution Frequency Monthly
- Management Style Active
- Management Fee 0.75%
- NAV (Oct 21, 2019) $26.62
- Total Assets (Oct 22, 2019) $32 Million
- Closing Price (Oct 21, 2019) $25.49
- Distribution $0.10417
- Distribution Rate (Oct 22, 2019) 4.03%
- Distribution Frequency Monthly
- Management Style Active
- Management Fee 0.75%
- NAV (Oct 21, 2019) $25.73
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.
Why Invest in Preferred Securities?
- Primarily investment-grade securities, with higher yield than many other fixed income categories
- Historical outperformance of other fixed income categories during periods of rising long-term interest rates
- Low correlation of returns; effective tool to diversify portfolio returns and risk
This Fund is for Investors who are:
- Seeking regular income
- Seeking to diversify their portfolio with corporate preferred shares, trust preferred shares and other corporate debt of North American issuers or of Canadian of U.S. dollar denominated securities of global issuers
- Can handle the ups and downs of the stock market
FUND FACTS
- Ticker (CAD Hedged)
BPRF -
CUSIP (CAD Hedged)
11221N109 -
Ouststanding (CAD Hedged)
(Oct 22, 2019)
1,220,000 - Ticker (USD Unit)
BPRF.U -
CUSIP (USD Unit)
11221N208 -
Ouststanding (USD Unit)
(Oct 22, 2019)
35,000 - Inception Date
October 15, 2018 - MER(1)
0.95% - Manager/Portfolio Manager
Brompton Funds Limited - Auditor
PricewaterhouseCoopers LLP - Custodian
CIBC Mellon Trust Company - Transfer Agent
TSX Trust Company - Eligibility
All registered and non-registered accounts - Sub Advisor
Flaherty & Crumrine Incorporated - Risk Rating
Low to Medium - ESG Score(2)
B
Sub-Advisor
Flaherty & Crumrine Incorporated: Established in 1983, Flaherty & Crumrine Incorporated specializes in US dollar denominated preferred securities and corporate debt instruments. The firm uses 30 years of proprietary data on over 1500 preferred securities to carry out intensive credit analysis, thorough vetting of securities’ terms and structures, and active portfolio management, with the goal of exploiting pricing inefficiencies in the fixed income markets to provide attractive rates of return on its funds.
Brompton Flaherty & Crumrine Investment Grade Preferred ETF
Summary of Investment Portfolio as at September 30, 2019
Top 25 Holdings
| % of Portfolio | % of Net Asset Value | |
|---|---|---|
| Cash and short-term investments | 10.3% | 10.3% |
| Capital One Financial, 5.00% due December 31, 2049 | 4.4% | 4.4% |
| Sempra Energy, 5.75% due July 01, 2079 | 4.1% | 4.1% |
| Axis Capital Holdings, 5.50% due December 31, 2049 | 3.2% | 3.3% |
| HSBC Holdings PLC, 6.50% due December 31, 2049 | 3.2% | 3.2% |
| Enbridge Inc., 6.00% due January 15, 2077 | 2.8% | 2.8% |
| Barclays PLC, 8.00% due December 31, 2049 | 2.8% | 2.8% |
| Emera Incorporated, 6.75% due June 15, 2076 | 2.6% | 2.6% |
| Arch Capital Group Ltd., 5.45% due December 31, 2049 | 2.6% | 2.6% |
| Energy Transfer Operating, 7.60% due December 31, 2049 | 2.3% | 2.3% |
| JPMorgan Chase & Co., floating rate due December 31, 2049 | 2.2% | 2.2% |
| ING Groep NV, 6.75% due December 31, 2049 | 2.1% | 2.1% |
| Credit Suisse Group AG, 6.375% due December 31, 2049 | 2.1% | 2.1% |
| Lloyds Banking Group PLC, 7.50% due December 31, 2049 | 1.9% | 1.9% |
| Athene Holding Ltd., 6.35% due December 31, 2049 | 1.9% | 1.9% |
| Transcanada Pipelines Limited, 5.50% due September 15, 2079 | 1.9% | 1.9% |
| Metlife Cap Trust IV, 7.875% due December 15, 2037 | 1.9% | 1.9% |
| Voya Financial, 5.35% due December 31, 2049 | 1.8% | 1.8% |
| Aercap Global Aviation Trust, 6.50% due June 15, 2045 | 1.7% | 1.7% |
| Banco Santander, 7.50% due December 31, 2049 | 1.7% | 1.7% |
| UBS Group Funding Switzerland, 7.00% due December 31, 2049 | 1.7% | 1.7% |
| Southern Company, 5.50% due March 15, 2057 | 1.6% | 1.6% |
| Renaissancere Holdings Ltd., 5.75% due December 31, 2049 | 1.6% | 1.6% |
| Regions Financial Corporation, 5.70% due December 31, 2049 | 1.6% | 1.6% |
| Duke Energy Corporation, 4.875% due December 31, 20491 | 1.5% | 1.5% |
| Total | 65.5% | 65.6% |
Distributions
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.
DRIP
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth. Any units acquired pursuant to the distribution reinvestment program qualify for the service fee.
Tax Allocation
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.
Class U Unit
| Record Date | Payment Date | Foreign Non- Business Income | Foreign Non- Business Income Tax Paid | Capital Gains | Total Distribution |
|---|---|---|---|---|---|
| Sep 30, 2019 | Oct 15, 2019 | 0.00000 | 0.00000 | 0.00000 | 0.10417 |
| Aug 30, 2019 | Sep 16, 2019 | 0.00000 | 0.00000 | 0.00000 | 0.06721 |
| Total | 0.00000 | 0.00000 | 0.00000 | 0.17138 | |
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Quick Contact
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