Brompton Funds

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Objectives To provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions of $0.13125, representing a yield of 5.25% per annum;

To provide holders of Class A shares with regular monthly cash distributions targeted to be $0.10, representing a yield of 8% per annum based on issue price; and

To return the original issue price to Preferred Shareholders and at least the original issue price to Class A Shareholders on redemption on May 31, 2011.
Distributions Click here to see the most recent distribution table.
Credit Rating Preferred shares rated Pfd-2 by DBRS
Portfolio Primarily Canadian common shares of companies listed on the TSX with market capitalizations at the time of investment of at least $500 million and up to 10% in common shares of companies included in the S&P 500 Index with market capitalizations at the time of investment of at least US$5 billion.
Low Fees Management fee of 1% of the net asset value per annum, which includes fees payable to the Porfolio Manager

2010 annualized management expense ratio of 1.76%
Manager Brompton Funds Management Limited
Portfolio Manager Highstreet Asset Management Inc.
Investment Strategy To achieve its investment objectives, the Fund invests in a portfolio consisting primarily of Canadian common shares with a market capitalization of at least $500 million at the time of investment, and up to 10% of the portfolio may be invested in common shares of US companies included in the S&P 500 with market capitalization of at least $5 billion at the time of investment. Highstreet Asset Management Inc. ("Highstreet"), the Fund's Portfolio Manager, actively manages the portfolio using its proprietary GVQ+R™ investment strategy to seek out equity investments that offer more attractive growth, value, and quality characteristics as compared to the S&P/TSX Composite Index, while maintaining market-like risk. Highstreet may also write covered call options or cash covered put options on a portion of the securities held in the portfolio to generate additional returns when it determines it is in the interest of the Fund to do so.
Retraction Privileges Monthly:
Preferred shares [Click to expand]
may be retracted on a monthly basis by surrendering the Preferred shares at least 10 business days prior to the retraction date which is the second last business day of the month. The retraction price per Preferred share will be equal to 96% of the lesser of (i) the NAV per unit determined as of the relevant retraction date less the cost to the Company of the purchase of a Class A share for cancellation, and (ii) $10.00.


Class A shares [Click to expand]
may be retracted on a monthly basis by surrendering the Class A shares at least 10 business days prior to the retraction date which is the second last business day of the month. The retraction price per Class A shares will equal 96% of the difference between (i) the NAV per unit determined as of the relevant retraction date, and (ii) the cost to the Company of the purchase of a Preferred Share for cancellation.


Annually:
Concurrent redemption at NAV on the second last business day of April, provided that Preferred shares and Class A shares are surrendered for retraction at least 10 business days prior.
Maturity Preferred Shares:
The company will redeem the Preferred shares on May 31, 2011, equal to the lesser value of (i) $10.00 plus any accrued and unpaid distributions and (ii) the NAV of the Company on that date divided by the number of Preferred shares then outstanding.

Class A Shares:
The company will redeem the Common shares on May 31, 2011, equal to the greater of (i) the NAV per unit (consisting of one Preferred Share and one Class A Share) minus $10.00 plus any accrued and unpaid distribution on the Preferred shares and (ii) nil.
Service Fee 0.40% of NAV of the Class A shares per annum is paid quarterly to investment advisors holding Class A shares.
Investment Approach
  1. Proprietary quantitative methodology to identify those securities with an attractive growth, value and risk (GVQ+R™).
  2. Growth Higher weighted average earnings growth rate than the TSX benchmark;
    Value Lower weighted average price/earnings ratio than the TSX benchmark;
    Quality Higher investment rate than the TSX benchmark; and
    Risk Similar volatility profile as the TSX benchmark.
    Rigorous buy and sell discipline: unless the criteria for GVQ+R™ as set out above are maintained for an equity, it will be replaced.
Eligibility Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs as Canadian property.
Termination May 31, 2011
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
 Preferred Shares - BE.PR.A
Class A Shares - BE
CUSIP Preferred Shares - 11220X 20 7
Class A Shares - 11220X 10 8