Invest in the Big Six Banks All at Once | Brompton Split Banc Fund Review
When it comes to investing in the stock market, you have many choices when it comes to industries. From oil & gas to real estate to aviation to technology to utilities to retail. Unquestionably, banking is one of the better industries among the lot. Banks are an integral part of the modern financial system and will be the last stronghold to fall in an apocalypse. So, investing in banks is as stable as they come.
In Canada, there are some amazing banks to invest in. The largest of the banks in Canada are also known as the Big Six. This includes the banks;
- Bank of Montreal
- Canadian Imperial Bank of Commerce
- National Bank of Canada
- Toronto-Dominion Bank
- Bank of Nova Scotia
- Royal Bank of Canada
The Big Six Banks differ from the Big Five Banks with the exclusion of the National Bank of Canada from the Big Five list.
Summary of the Big Six Banks
| Bank | Inception | Assets (C$ bn) | Revenue (C$ bn) |
| Royal Bank of Canada | 1864 | $1,074 | $38.2 |
| Toronto-Dominion Bank | 1855 | $1,104 | $34.35 |
| Bank of Nova Scotia | 1832 | $856 | $26.4 |
| Bank of Montreal | 1817 | $641 | $20.9 |
| Canadian Imperial Bank of Commerce | 1867 | $463 | $14.8 |
| National Bank of Canada | 1859 | $322 | $7.9 |
The Big Five and the Big Six Banks were among some of the better institutions to weather the COVID-19 pandemic, too.
Any of these banks would be a sound option to invest your money in. But, keep in mind that investments carry some degree of risk, no matter how sound a company may look.
Brompton Split Banc Fund Review
Brompton Funds Limited has an amazing investment opportunity when it comes to investing in the Big Six in Canada. The Brompton Split Banc fund allows investors to invest in all six big banks of Canada. Along with the potential capital appreciation in the long run, the fund also offers a great dividend return.
Brompton Split Banc fund, started in 2005, comes in two classes of shares; Class A shares (SBC.TO) and Preferred Shares (SBC.PR.A). As usual, Class A shares carry higher risk and higher rewards. Preferred shares carry lower risk and steady returns.
The objective of the Split Banc fund is to give investors the opportunity to diversify their investment in the financial sector in Canada, focusing on the best and biggest banks in Canada.
As of June 30, 2021, Brompton Split Banc fund had total net assets of $337 million. Since the fund’s inception in November 2005, the fund has appreciated by 487% as of June 30, 2021. This means that an investment of $10,000 in the fund in 2005 would be worth around $58,714 in 6 years. This is a pretty impressive return.
Brompton Split Banc Fund Portfolio
There is no surprise in the Brompton Split Banc fund portfolio. It’s all the Big Six banks in Canada. The fund tries to maintain an equal position in each bank. Below is the fund composition as of June 30, 2021.
| Bank | % of Net Asset Value |
| Bank of Montreal | 16.0% |
| Canadian Imperial Bank of Commerce | 15.6% |
| National Bank of Canada | 15.5% |
| Toronto-Dominion Bank | 15.1% |
| Bank of Nova Scotia | 14.8% |
| Royal Bank of Canada | 14.5% |
| Brompton North American Financials Dividend ETF | 8.9% |
| Cash and Short-term Investments | 0.2% |
Brompton Split Banc Fund Distributions
Brompton Split Banc Class A shares are offered a respectable dividend of $0.1 per month. This totals to an annual dividend of $1.2, and on today’s share price of $14.61, the distribution yield a high 8.22% return.
The fund has not missed a monthly dividend payment since 2010.
Check out the latest details of the Brompton Split Banc fund on their official website.
