Brompton Funds has launched two new actively-managed ETFs on the Toronto Stock Exchange today. The ETFs will seek to hedge substantially all of their direct foreign currency exposure back to the Canadian dollar. A final prospectus dated 20 April, 2020 has been filed with the securities regulatory authorities in each province and territory in Canada.
Brompton Global Real Assets Dividend ETF (BREA) invests directly or indirectly in a diversified actively managed portfolio consisting of securities of global Real Asset Companies. Global Real Asset Companies include those companies involved in the Real Estate, Utilities, or Infrastructure sectors, and may at the Manager’s discretion include companies that supply services or equipment to Real Asset Companies. Real Asset Companies may be involved in traditional real asset business activities such as ownership and operation of power plants, pipelines, transportation infrastructure, telecommunications networks, commodities-related businesses, or real estate. In order to increase distributable cash and to reduce portfolio volatility, the Manager may, at its discretion, write covered calls on BREA’s portfolio. BREA’s targeted distribution rate is 5.0 per cent per annum, to be paid monthly. BREA has been assigned a risk rating of “Medium”.
Brompton North American Low Volatility Dividend ETF (BLOV) invests in an actively managed portfolio consisting of equity securities of North American issuers with a minimum market capitalisation of USD5 billion. The BLOV portfolio will be constructed so as to produce lower volatility than the broad equity market. In order to increase distributable cash and to further reduce portfolio volatility, the Manager may, at its discretion, write covered calls on BLOV’s portfolio. BLOV’s targeted distribution rate is 4.0 per cent per annum, to be paid monthly.