Brompton Funds launches multi-asset income ETF on TSX

Oct 24th, 2022 | By | Category: Alternatives / Multi-Asset

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Brompton Funds has launched a new actively managed ETF in Canada that aims to deliver an enhanced yield by investing across several income-producing asset classes.

Brompton Funds launches multi-asset income ETF on TSX

The ETF aims to deliver a 10% annual distribution rate, paid monthly.

Listed on the Toronto Stock Exchange, the Brompton Enhanced Multi-Asset Income ETF (BMAX CN) targets a 10% annual distribution rate, paid on a monthly basis.

The fund gains its exposure by investing primarily in Brompton’s existing suite of ETFs with the initial asset allocation targeting a 70% exposure to covered call equity strategies, 20% to fixed income, and 10% to preferred shares.

According to the fund’s prospectus, BMAX combines a variety of investment strategies diversified across geographical regions and sectors to provide a portfolio solution for various market conditions.

Modest leverage (up to 33% of NAV) may be utilized to enhance portfolio income and capital appreciation potential.

The fund charges zero direct management fees, although investors will be charged the fees applicable to the underlying Brompton ETFs held in the portfolio. According to BMAX’s prospectus, these fees are expected to range between 0.55% and 0.75%.

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