Investment Grade Preferred ETF
Helping you navigate your way to investment grade income, Brompton Flahery and Crumrine Investment Grade Preferred ETF. Active management at high distributions.
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
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2.0 billion in assets under management. Brompton offers income, growth, sector specific and tax advantaged investment solutions, and many funds provide a high level of monthly distributions. Brompton’s investment solutions include TSX traded funds, mutual funds and flow-through limited partnerships and all products feature best-in-class portfolio management custom tailored to the investment mandate. Brompton’s success is achieved by offering innovative, well-conceived products with fair terms at low cost and supported by strong corporate governance.
For more information on Brompton Funds Ltd. (BPRF:TSX) please fill out the form below.