Calgary-based Middlefield Group will launch a platform of ETFs by converting two of its closed-end mutual funds, Middlefield Healthcare & Life Sciences Dividend Fund and REIT INDEXPLUS Income Fund, the investment manager announced Wednesday.
The two funds, which are both managed by Middelfield, together represent approximately $150 million in assets.
Middlefield Healthcare & Life Sciences Dividend Fund (LS.UN: TSX) will become “Canada’s first actively managed diversified healthcare ETF,” Middlefield says in a statement. The fund invests in the securities of global healthcare and life science issuers. Dean Orrico, Middlefield’s president and chief investment officer, is the lead portfolio manager, and Richard Evans of SSR LLC acts as an industry advisor. The fund pays a monthly distribution and has outperformed both the S&P/TSX Composite Index, Middlefield says.
REIT INDEXPLUS Income Fund (IDR.UN: TSX) “provides investors with low-cost exposure to the real estate sector through a combination of indexing and active portfolio management,” Middlefield says. Orrico is the lead portfolio manager, and calls REITs among the “most attractive equity income vehicles available to investors providing compelling risk-adjusted returns during both up and down markets”.
Special meetings will be held on Dec.10, where unitholders of the funds as of November 7 will be asked to approve their conversions to ETFs.
If approved, Middlefield anticipates the conversions will happen in early 2019.