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‘It’s a key equity solution for investors’: How Harvest assembles brand giants for a surefire

As James Learmonth (Senior Portfolio Manager, Harvest Portfolio Group) puts it, it is “a highly reliable portfolio”.

“You can feel comfortable owning it,” he reflects. “These are great companies. They have been around for a long time and they are dominating players in their markets.”

“You want to invest in companies that have proven to be great operators, have strong management teams, and have a growing market over time. HBF is truly a premier equity solution for investors.”

Launched in 2014, the ETF is an evenly weighted portfolio of 20 large companies selected from among the top 100 brands in the world. Designed to provide a steady monthly income stream with growth opportunity, it generates an increased monthly distribution yield by incorporating a proactive covered call strategy.

“Part of our strategy,” Liermont elaborates, “is that, each month, we calculate what we call the hurdle rate. We calculate how much of the option we have to meet our monthly distribution needs. There is a need to generate premium, and the natural dividend that we get from the underlying holdings.”

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