TORONTO, Nov. 26, 2021 (GLOBE NEWSWIRE) -- (TSX: BEPR) Brompton Funds Limited (the "Manager" and "Brompton"), the manager of Flaherty & Crumrine Investment Grade Preferred Income Fund (TSX:FFI.UN, the "Fund") is pleased to announce that the Fund has completed its conversion from a closed-end fund to an exchange-traded fund (the "Conversion"). The Conversion was approved by unitholders at a special meeting of unitholders of the Fund held on November 1, 2021.
Commencing today, the name of the Fund has changed to "Brompton Flaherty & Crumrine Enhanced Investment Grade Preferred ETF", and the units of the Fund were redesignated as "CAD units". CAD units of the Fund now trade under the new Toronto Stock Exchange ("TSX") ticker symbol: BEPR.
As of October 31, 2021, the Fund had a 10-year annual compound return of 9.8%1. The Conversion allows for the continuation of the Fund's successful investment strategy (as an exchange-traded fund), while adding incremental flexibility and increasing the Fund's investible universe.
The Fund is the first actively managed leveraged-long-only Fixed Income ETF listed in Canada, offering investors a U.S. Preferreds strategy with active management by specialists Flaherty & Crumrine Incorporated ("FCI"). The Fund is an attractive option for investors seeking enhanced income in today's low-interest-rate environment, offering a distribution rate of over 6% by continuing its leveraged investment in a U.S. Preferreds portfolio comprised of at least 75% investment-grade securities.
The Fund also offers a distribution reinvestment plan ("DRIP") which provides unitholders with the ability to automatically reinvest distributions, commission free, and realize the benefits of compound growth. Unitholders can enroll in the DRIP program by contacting their investment advisor.
About Flaherty & Crumrine
Flaherty & Crumrine Incorporated is the sub-advisor to the Fund. FCI was established in 1983 and specializes in US-dollar-denominated preferred securities and corporate debt instruments. The firm uses 30 years of proprietary data on over 1,500 preferred securities to carry out intensive credit analysis, thorough vetting of securities' terms and structures, and active portfolio management, with the goal of exploiting pricing inefficiencies in the preferred securities market to provide attractive rates of return to investors.
About Brompton Funds
Founded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment funds. For further information, please contact your investment advisor, call Brompton's investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email [email protected] or visit our website at www.bromptongroup.com.
|Annual Compound Returns1|
|TSX:BEPR - Brompton Flaherty & Crumrine Enhanced Investment Grade Preferred ETF (formerly Flaherty & Crumrine Investment Grade Preferred Income Fund)||8.3%||17.7%||9.5%||7.1%||9.8%|
1) Returns are for the periods ended October 31, 2021 and are unaudited. The table shows the Fund's compound return for each period indicated. Past performance does not necessarily indicate how the Fund will perform in the future. The information shown is based on NAV per unit and assumes that distributions made by the Fund on the units in the period shown were reinvested at NAV per unit in additional units of the Fund. The table above also shows the Fund's compound return for each period indicated.
Commissions, trailing commissions, management fees and expenses all may be associated with exchange-traded fund investments. Please read the prospectus before investing. 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 sales, redemption, distribution or optional charges or income tax payable by any securityholder that would have reduced returns. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
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