Active mandates include low-vol portfolio of North American issuers and global real-asset companies
Brompton Funds has launched two new ETFs on the TSX, for which it will provide active management.
The Brompton Global Real Assets Dividend ETF, listed under the ticker symbol BREA, invests directly or indirectly in a diversified portfolio of global real-asset companies. It may include traditional real-asset companies that own and operate power plants, pipelines, transportation infrastructure, telecommunications networks, commodities-related businesses, or real estate.
With a “medium” risk rating, the fund targets a distribution rate of 5% per annum, to be paid monthly. To increase distributable cash and lower portfolio volatility, Brompton may elect to write covered calls on BREA’s portfolio at its discretion.
Meanwhile, the Brompton North American Low Volatility Dividend ETF, listed as BLOV on the TSX, invests in equity securities of North American issuers whose market capitalization is not less than $5 billion. The portfolio will be constructed to generate lower volatility than the broad equity market.
To increase distributable cash and further reduce the portfolio’s volatility, Brompton may also choose to write covered calls on the portfolio. BLOV has a “low to medium” risk rating, with a targeted distribution rate of 4% per annum to be paid monthly.
Both ETFs will seek to hedge substantially all their direct foreign currency exposure back to the Canadian dollar.