Corton Enhanced Income Fund
Access to investment grade floating rate collateralized loan obligations (CLOs) in a liquid and transparent ETF.
Overview
Compelling Yield
RAAA provides access to predominately AAA as well as AA and A-rated Collateralized Loan Obligations ("CLOs"). These securities have traditionally been only available to institutional investors and may offer attractive yield and diversification advantages relatively to other cash replacement and fixed income options.
Maintain Purchasing Power
The floating rate feature of CLOs will generate a higher yield when interest rates increase and a lower yield when interest rates fall, providing alignment to maintain purchasing power.
Diversification
CLOs are a unique asset class that may provide investors with enhanced portfolio diversification relative to traditional bonds.
Investment Summary
| Volatility | Low |
| Liquidity | T +1 |
| Capital Preservation | AAA - A CLOs |
| Income Generation | Variable |
| Investment Horizon | Short to Medium |
| Fees | 0.45% Annual Management Fee |
Strategy
RAAA invests primarily in AAA rated securities through a diversified portfolio of European and U.S. CLOs (“collateralized loan obligations”) in both the primary and secondary markets. CLOs are primarily backed by loans that are senior in terms of priority relative to bonds and are secured by assets of the underlying obligator. The underlying securities are floating rate, includes AAA, AA and A rated, asset backed and may provide attractive yields over and above other Canadian HISA products (“high interest savings accounts”). Corton Capital Inc. has engaged Astra Asset Management UK Limited, based in London, UK, as the sub-advisor. RAAA hedges it’s returns to the Canadian dollar to reduce FX (“foreign exchange”) exposures.
Objective
RAAA seeks to provide Unitholders with a high level of current income by investing in a diversified portfolio European and U.S. floating rate primarily AAA rated collateralized loan obligations (CLOs), but may also include AA or A securities. RAAA will seek to hedge its non-Canadian dollar currency exposure at all times.
ETF Details
Eligibility
- Registered Accounts Eligible
- SWP
- PACC
Sub-Advisor
Astra Asset Management UK Ltd.
Shikha Gupta
Portfolio Manager and Investment Management Team member
Christian Adler
Co-Founder and Investment Management Team member
Summary of Investment Portfolio as at March 31, 2025
Credit Quality
Sectors
Regions
Holdings | Portfolio % |
|---|---|
Voya Euro CLO I DAC, Series '1X'; Class 'A1R' | 11.84% |
| Adagio XII Eur Clo DAC | 11.45% |
| Sound Point Euro CLO XI Funding DAC | 11.43% |
| Adagio CLO VIII DAC | 11.04% |
| CVC Cordatus Loan Fund XXXII DAC | 10.95% |
| Ares European CLO XX DAC | 8.02% |
Trinitas Euro CLO VII DAC | 7.89% |
| Barings Euro CLO 2019-2 DAC | 7.84% |
| Barings Euro CLO 2021-2 DAC | 7.80% |
| Voya Euro CLO I DAC, Series '1X', Class 'A2R' | 4.74% |
Arbour CLO V DAC | 4.38% |
Bain Capital Euro CLO 2019-1 DAC | 2.82% |
| Invesco Euro CLO IV DAC | 2.77% |
| Northwoods Capital 23 Euro DAC | 1.93% |
| Cash and Cash Equivalents | 1.16% |
| Forward Foreign Currency Contracts for Hedging Purposes - Net* | -6.05% |
| Forward Foreign Currency Contracts for Hedging Purposes - Long | 147.50% |
| Forward Foreign Currency Contracts for Hedging Purposes - Short | -153.55% |
| Net | -6.05% |
| Rec Date | Pay Date | Amount per Unit | Type |
|---|---|---|---|
| 30-May-2025 | 06-Jun-2025 | $0.0875 | Monthly |
| 30-Apr-2025 | 07-May-2025 | $0.0875 | Monthly |
| 25-Mar-2025 | 04-Apr-2025 | $0.0100 | Monthly |
| 28-Feb-2025 | 07-Mar-2025 | $0.0875 | Monthly |
| 31-Jan-2025 | 07-Feb-2025 | $0.0350 | Monthly |
| 31-Dec-2024 | 29-Jan-2025 | $0.068934 | Year End |
| Date | Title | Link |
|---|---|---|
| 23-May-2025 | Corton Capital Inc. Announces May 2025 Distributions for the Exchange Traded Fund | Read |
| 21-Apr-2025 | Corton Capital Inc. Announces April 2025 Distributions for the Exchange Traded Fund | Read |
| 28-Mar-2025 | Annual Management Report of Fund Performance - Dec 31, 2024 | Read |
| 28-Mar-2025 | Independent Review Committee (IRC) Annual Report to Securityholders - Dec 31, 2024 | Read |
| 28-Mar-2025 | Corton Enhanced Income Fund Financial Statements - Dec 31, 2024 | Read |
| 25-Mar-2025 | Corton Capital Inc. Announces March 2025 Distributions for the Exchange Traded Fund | Read |
| 20-Feb-2025 | Corton Capital Inc. Announces February 2025 Distributions for the Exchange Traded Fund | Read |
| 05-Feb-2025 | Corton Capital Inc. Announces Consolidation of Class ETF Units and Management Fee and Distribution Frequency Changes | Read |
| 23-Jan-2025 | Corton Capital Inc. Announced January 2025 Distributions for the Exchange Traded Fund | Read |
| 16-Jan-2025 | Correction Notice to Press Release Issued by Corton Capital Inc. on January 10, 2025 | Read |
| 10-Jan-2025 | Corton Capital Inc. Announces January 2025 Distributions for the Exchange Traded Fund | Read |
| 18-Sep-2024 | Corton Capital Inc. Accounces Launch of Corton Enhanced Income Fund. | Read |
Contact: ETF@CortonCapital.ca
Phone: 1 888 822 1171
<advisor information>
Commissions, management fees and expenses all may be associated with an investment in exchange-traded funds (ETFs). You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Please read the prospectus before investing. Important information about an exchange-traded fund is contained in its prospectus.