Tech Leaders Income ETF
Invest Now- Closing Price (Mar 21, 2019) $12.61
- Distribution $0.054
- Distribution Rate (Mar 21, 2019) 5.22%
- Distribution Frequency Monthly
- Management Style Active with Covered Calls
- Management Fee 0.75%
- NAV (Mar 20, 2019) $12.47
- Total Assets (Mar 21, 2019) $36 Million
This ETF provides high monthly distributions and the opportunity for capital gains through an investment in an actively managed portfolio of large cap global Technology companies selected by Brompton, complemented by a proprietary covered call program.
Our PM team first uses top-down analysis to identify attractive sub-sectors. Rigorous fundamental analysis focuses the portfolio on 15 to 20 global Technology companies which offer a combination of growth and value characteristics. The PMs then actively set the level of covered call writing (up to a maximum of 33%), with the goal of optimizing distributable cash and total returns.
Why Invest in Technology?
- Tech sector is profitable, with minimal debt, and significant free cash flow
- Under-represented sector in the Canadian equity market; global Technology equities provide diversification benefits
- Long term trends are supportive of Technology equities
This ETF is for Investors who are:
- Seeking stable monthly cash distributions.
- Seeking opportunity for capital appreciation and lower overall volatility of portfolio returns than would otherwise be experienced by owning securities of technology companies directly.
- Can handle the ups and downs of the stock market.
FUND FACTS
- Ticker
TLF:CC -
CUSIP
878258102 -
Outstanding
(Mar 21, 2019)
2,921,017 - Inception Date
May 20, 2011 - ETF Conversion Date
April 3, 2018 - MER(1)
0.95% - Currency
Hedged to 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
Manager/Portfolio Manager
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with over $2 billion in assets under management. Brompton’s Portfolio Management team specializes in Canadian and global equity investments and is a leading manager of covered call writing strategies in Canada.
Tech Leaders Income ETF
Summary of Investment Portfolio as at February 28, 2019
Holdings
| % of Portfolio | % of Net Asset Value | |
|---|---|---|
| Keysight Technologies Inc. | 7.4% | 7.4% |
| Mastercard Incorporated | 5.9% | 5.9% |
| Adobe Inc. | 5.8% | 5.8% |
| Intel Corporation | 5.8% | 5.8% |
| Alphabet Inc. | 5.8% | 5.7% |
| Motorola Solutions Inc. | 5.7% | 5.7% |
| Amphenol Corporation | 5.6% | 5.6% |
| Fiserv Inc. | 5.6% | 5.6% |
| Microsoft Corporation | 5.5% | 5.5% |
| Visa Inc. | 5.5% | 5.5% |
| Oracle Corporation | 5.4% | 5.4% |
| CDW Corporation | 5.3% | 5.3% |
| Crown Castle International Corp. | 5.3% | 5.3% |
| Accenture PLC | 5.2% | 5.2% |
| Salesforce.com Inc. | 5.1% | 5.1% |
| Amazon.com Inc. | 5.1% | 5.1% |
| Cisco Systems Inc. | 5.1% | 5.1% |
| Apple Inc. | 4.7% | 4.7% |
| Cash and short-term investments | 0.2% | 0.2% |
| Total | 100% | 99.9% |
Annual Compound Returns(1)
| YTD | 1-Year | 3-Year | 5-Year | Since Inception(2) | |
|---|---|---|---|---|---|
| Tech Leaders Income ETF | 13.9% | 5.8% | 22.3% | 11.5% | 10.7% |
| S&P Technology Index | 14.3% | 5.8% | 24.2% | 17.6% | 16.7% |
| S&P/TSX Composite Index | 12.2% | 6.9% | 10.8% | 5.5% | 5.2% |
Year-by-Year Returns
| Since Inception(2) | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011(3) | |
|---|---|---|---|---|---|---|---|---|---|
| Tech Leaders Income ETF | 10.7% | 4.0% | 34.4% | 8.4% | (13.3%) | 15.3% | 31.2% | 4.8% | (7.0%) |
| S&P Technology Index | 16.7% | (0.3%) | 38.8% | 13.8% | 5.9% | 20.1% | 28.4% | 14.8% | (1.1%) |
| S&P/TSX Composite Index | 5.2% | (8.9%) | 9.1% | 21.1% | (8.3%) | 10.6% | 13.0% | 7.2% | (10.9%) |
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 distributions made by the Fund on its units in the period 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’’), and the S&P Information Technology Index (‘‘S&P Technology Index’’). The Composite Index tracks the performance, on a market weight basis, of a broad index of large-capitalization issuers listed on the TSX. The S&P Technology Index, a sub-index of the S&P 500 Index, tracks the performance of 75 major North American technology companies. The Fund invests on an equal weight basis in at least 15 technology companies. The indices have more diversified portfolios and it is therefore not expected that the Fund’s performance will mirror that of the indices. The indices are 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 Tech Leaders Income 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.
Distributions
Distributions from the Fund have tax benefits which results in higher after-tax cash flow than if the income had been earned as interest income.
It is expected that distributions to unitholders will primarily be characterized as combination of capital gains and return of capital, but may also include ordinary dividends.
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.
| Record Date | Payment Date | Return of Capital | Total Distribution |
|---|---|---|---|
| Mar 29, 2019 | Apr 12, 2019 | 0.00000 | 0.05400 |
| Feb 28, 2019 | Mar 14, 2019 | 0.00000 | 0.05400 |
| Jan 31, 2019 | Feb 14, 2019 | 0.00000 | 0.05400 |
| Dec 31, 2018 | Jan 15, 2019 | 0.05400 | 0.05400 |
| Nov 30, 2018 | Dec 14, 2018 | 0.05400 | 0.05400 |
| Oct 31, 2018 | Nov 14, 2018 | 0.05400 | 0.05400 |
| Sep 28, 2018 | Oct 15, 2018 | 0.05400 | 0.05400 |
| Aug 31, 2018 | Sep 17, 2018 | 0.05400 | 0.05400 |
| Jul 31, 2018 | Aug 15, 2018 | 0.05400 | 0.05400 |
| Jun 29, 2018 | Jul 16, 2018 | 0.05400 | 0.05400 |
| May 31, 2018 | Jun 14, 2018 | 0.05400 | 0.05400 |
| Apr 30, 2018 | May 14, 2018 | 0.05400 | 0.05400 |
| Total | 0.48600 | 0.64800 | |
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Quick Contact
Email: info@bromptongroup.com
