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Canadian High Income Equity Fund

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  • Closing Price (Sep 16, 2019) $7.65
  • Distribution $0.05
  • Distribution Rate (Sep 17, 2019) 7.84%
  • Distribution Frequency Monthly
  • Management Style Active
  • Management Fee 1.25%
  • NAV (Sep 12, 2019) $7.75
  • Total Assets (Aug 31, 2019) $16 Million

Why Invest?

  • The Investment Manager believes that high-income common equities in Canada will continue to outperform non-dividend-paying common equities
  • The Investment Manager believes that investors will continue to place a premium on these companies due to (i) strong cash flows, (ii) the discipline that a high dividend rate places on management, and (iii) investor demand for high levels of income
  • Investment Manager, Bloom Investment Counsel, Inc. specializes in high income equity investments with over 30 years of experience

Investment Objectives

To achieve a high level of monthly cash distributions and the opportunity for capital appreciation by investing in a high income equity portfolio, consisting primarily of dividend paying Canadian equities.

This Fund is for Investors who are:

  • Seeking capital appreciation
  • Seeking income
  • Comfortable with equity risk

FUND FACTS

  • Ticker
    CIQ.UN
  • CUSIP
    136012200
  • Service Fee
    0.40%
  • Outstanding (Sep 17, 2019)
    2,062,988
  • Inception Date
    February 18, 2010
  • Currency
    CAD
  • 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
  • Annual Redemption Date
    2nd last business day of September
  • Annual Redemption Notice Deadline
    Last business day of August
  • Leverage
    Up to 25% of total assets
  • Investment Manager
    Bloom Investment Counsel, Inc.

Portfolio Manager

Bloom Investment Counsel, Inc. (“Bloom”) was established in 1985 and specializes in the management of segregated investment portfolios for wealthy individuals, corporations, foundations, institutions and trusts. In addition to its conventional investment management business, Bloom currently manages specialty high-yield equity portfolios comprised of dividend-paying common equity securities, income trusts, and real estate investment trusts. Bloom currently provides investment management services to four TSX-listed, closed-end portfolios.

Canadian High Income Equity Fund

Summary of Investment Portfolio as at June 30, 2019

Total Net Asset Value$16,002,346.00

Top 10 Holdings

% of Portfolio% of Net Asset Value
Superior Plus Corp.5.5%5.6%
Manulife Financial Corporation5.5%5.5%
Altus Group Limited5.1%5.2%
Premium Brands Holdings Corp.5.1%5.1%
Bank of Nova Scotia (The)5.0%5.0%
Toronto-Dominion Bank (The)4.9%5.0%
Northland Power Inc.4.8%4.9%
Sun Life Financial Inc.4.8%4.8%
Keyera Corp.4.6%4.7%
Boralex Inc.4.5%4.6%
Total49.8%50.4%
Performance NAV History

Annual Compound Returns(1)

YTD 1-Year 3-Year 5-Year Since Inception(2)
Canadian High Income Equity Fund 12.2% (8.4%) (0.6%) (4.0%) 3.8%
S&P/TSX Composite Index 17.1% 4.3% 7.2% 4.1% 6.8%

Year-by-Year Returns

Since Inception(2) 2018 2017 2016 2015 2014 2013 2012 2011 20103
Canadian High Income Equity Fund 3.8% (20.5%) 2.0% 29.1% (12.9%) (2.3%) 11.9% (3.1%) 10.7% 19.1%
S&P/TSX Composite Index 6.8% (8.9%) 9.1% 21.1% (8.3%) 10.6% 13.0% 7.2% (8.7%) 17.8%

The tables show the past performance of the Fund. Past performance does not necessarily indicate how the Fund will perform in the future. The information shown is based on Net Asset Value per unit and assumes that cash distributions made by the Fund and deemed distributions based on the warrants’ intrinsic value at their approximate exercise date of the warrants in the periods shown were reinvested at Net Asset Value per unit in additional units of the Fund.

The tables show the Fund’s year-by-year and compound returns for each period indicated compared with the S&P/TSX Composite Index (‘‘Composite Index’’). The Composite Index tracks the performance, on a market weight basis and a total return basis, of a broad index of large capitalization issuers listed on the TSX including common stocks, REITs and income trust units and is an appropriate benchmark as the Fund primarily invests in such common stocks, REITs and income trusts. Since the Fund is actively managed, the sector weightings differ from those of the Composite Index. In addition, the Fund’s portfolio contains predominantly high dividend paying securities, whereas the Composite Index does not necessarily focus on this type of investment. For these reasons it is not expected that the Fund’s performance will mirror that of the Composite Index. Further, the Composite Index is calculated without the deduction of management fees and fund expenses, whereas the performance of the Fund is calculated after deducting such fees and expenses.

Returns for Canadian High Income Equity Fund are unaudited.

You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”).  If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them. 

There are ongoing fees and expenses associated with owning units of an investment fund.  An investment fund must prepare disclosure documents that contain key information about the fund.  You can find more detailed information about the fund in the public filings available at www.sedar.com.  The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns.  Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

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Distributions

The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March as soon as possible following receipt of the information from the Fund’s individual holdings. 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 Other Income (Investment Income and Non-Investment Income) in Box 26, Foreign Non-Business Income in Box 25, Capital Gains in Box 21 and Eligible Dividend Income in 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
Record Date Payment Date Return of Capital Foreign Non- Business Income Investment Income Eligible Dividend Capital Gains Total Distribution
Oct 15, 2019 Jan 01, 1970 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Aug 30, 2019 Sep 16, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Jul 31, 2019 Aug 15, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Jun 28, 2019 Jul 15, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
May 31, 2019 Jun 14, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Apr 30, 2019 May 14, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Mar 29, 2019 Apr 12, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Feb 28, 2019 Mar 14, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Jan 31, 2019 Feb 14, 2019 0.00000 0.00000 0.00000 0.00000 0.00000 0.05000
Dec 31, 2018 Jan 15, 2019 0.04192 0.00000 0.00000 0.00808 0.00000 0.05000
Nov 30, 2018 Dec 14, 2018 0.04192 0.00000 0.00000 0.00808 0.00000 0.05000
Oct 31, 2018 Nov 14, 2018 0.04192 0.00000 0.00000 0.00808 0.00000 0.05000
Total 0.12576 0.00000 0.00000 0.02424 0.00000 0.60000
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