Brompton Funds

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Objectives To provide unitholders with the benefits a high level of monthly tax-advantaged distributions and the opportunity for capital appreciation.
Distributions Monthly distributions are primarily a return of capital and to a lesser extent capital gains for tax purposes, click here for most recent distribution table.
Portfolio The Fund's investments include dividend-paying common equities and convertible debt of oil and gas producers, energy service companies and pipeline entities.
Low Fees Management fee of 0.90% of net assets per annum, which includes fees payable to the Portfolio Manager.

2010 management expense ratio of 1.73% (excluding interest expense, issuance costs of warrants and forward agreement fees).
Manager Brompton Funds Management Limited.
Portfolio Manager Manulife Asset Management, the institutional asset management arm of Manulife Financial
Investment Approach Manulife Asset Management will attempt to achieve strong risk-adjusted returns and a high level of monthly income by adhering to the following disciplined investment approach:
  1. active asset and sector allocation based on relative return and risk analysis;
  2. fundamental "bottom up" analysis of potential investments including meeting with management teams;
  3. discounted cash flow models, price per barrel of oil equivalent reserves analysis and price to debt adjusted cash flows to determine intrinsic value;
  4. emphasis on high quality securities, liquidity, capital preservation and broad diversification; and
  5. detailed in-house credit analysis of fixed income investments as well as third party and independent research.
Leverage The fund may borrow up to 20% of total assets to purchase additional securities to enhance the total return of the portfolio. It is expected following the reorganization the Fund will initially employ leverage of up to 15%.
Service Fee A service fee of 0.40% of NAV per annum is paid quarterly to Investment Advisors.
Eligibility Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs as Canadian property.
Redemption Annually on the second last business day of August, provided units are tendered by the last business day of July. [Click here for more details]
At a Special Meeting of unitholders held June 9, 2008, the annual redemption date was amended from that described in the prospectus to the second last business day of August.

Units may be redeemed at the option of the unitholders by tendering units of the Fund by the last business day of July for redemption on the second last business day of August ("Redemption Valuation Date"). Redemption of tendered units will be settled based on net asset value per unit on the Redemption Valuation Date, less associated costs of the redemption, including brokerage costs. Units tendered for redemption will be redeemed effective the Redemption Valuation Date and will be settled on or before the tenth business day of September, subject to the Manager's right to suspend redemptions in certain circumstances. For purposes of calculating the net asset value per unit, the value of the securities comprising the portfolio will be equal to the weighted average trading price of such securities over the last three business days of August.

Please note, the annual redemption date was amended at a unitholder meeting on June 9, 2008, to August of each year.

Termination On or about August 31, 2028
Issuer Bid/Market Purchases The Fund may purchase up to 10% per annum of its outstanding units at prices up to net asset value per unit.
Fair Investor Terms Strong corporate governance
Commitment to low fees and overall cost containment
No entrenched management provisions and a prohibition against dilutive equity offerings
TSX Listing Trust Units - AOG.UN
CUSIP Trust Units - 11221L103