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Brompton Flaherty & Crumrine Investment Grade Preferred ETF

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  • Closing Price (Aug 19, 2019) $26.09
  • Distribution $0.10417
  • Distribution Rate (Aug 20, 2019) 4.86%
  • Distribution Frequency Monthly
  • Management Style Active
  • Management Fee 0.75%
  • NAV (Aug 16, 2019) $26.10
  • Total Assets (Aug 20, 2019) $23 Million
  • Closing Price (Aug 19, 2019) $25.13
  • Distribution $0.10417
  • Distribution Rate (Aug 20, 2019) 4.09%
  • Distribution Frequency Monthly
  • Management Style Active
  • Management Fee 0.75%
  • NAV (Aug 16, 2019) $25.17

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) (Aug 20, 2019)
    660,000
  • Ticker (USD Unit)
    BPRF.U
  • CUSIP (USD Unit)
    11221N208
  • Ouststanding (USD Unit) (Aug 20, 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 June 30, 2019

Total Net Asset Value$15,961,344.00

Top 10 Holdings

% of Portfolio% of Net Asset Value
Cash and short-term investments4.8%4.8%
Bank Of America Corp., floating rate due December 31, 20494.5%4.5%
JPMorgan Chase & Co, 5.00% due December 31, 20494.5%4.5%
Southern Company, 5.50% due March 15, 20573.3%3.3%
Axis Capital Holdings, 5.50% due December 31, 20493.1%3.1%
Regions Financial Corporation, 5.70% due December 31, 20493.0%3.0%
Arch Capital Group Ltd, 5.45% due December 31, 20492.9%2.9%
Algonquin Power & Utilities Corp., 6.20% due July 01, 20792.9%2.9%
Athene Holding Ltd., 6.35% due December 31, 20492.6%2.6%
Goldman Sachs Group, 5.50% due December 31, 20492.5%2.5%
Total34.1%34.1%
NAV History

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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.

DRIP Plan

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.

Select a year

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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