Brompton Funds
| Objectives | To provide a variable level of monthly cash distributions and the opportunity to participate in gains in the value of the investment portfolio. |
| Distributions | Paid monthly click here for most recent distribution table |
| Portfolio | Actively managed, diversified portfolio of publicly listed or traded income producing securities, including income trusts, royalty trusts, real estate investment trusts, common equities, preferred securities and debt instruments and may include a limited amount of foreign securities. |
| Low Fees | Combined annual administration and investment management fee of 1.0% of NAV per annum. 2010 management expense ratio of 1.76% (excluding one-time extraordinary costs). |
| Administrator | Brompton Funds Limited will provide administrative services |
| Portfolio Manager | Bloom Investment Counsel Inc. |
| Investment Approach |
Bloom first uses a conservative, fundamental, "top down" investment approach that assesses macro factors, such as economic conditions, business factors, commodity prices, interest rates and credit ratings. Bloom then reviews the relative valuation and volatility of each asset class, as well as the historical and anticipated correlation and co-variance relationship between such asset classes, to determine an optimal asset allocation mix. As a result, Bloom takes a lower risk approach to investment, de-levering and carrying cash balances if he believes that equity markets are overvalued and generally has a lower allocation to the volatile oil and gas trust sector.
Bloom then uses a "bottom up" , fundamental investment approach to select individual security holdings, analyzing each company's business, prospects and management to determine whether it is undervalued or has growth potential. Bloom capitalizes on this selective acquisition strategy through a "buy and hold" philosophy. |
| Leverage | The Fund may borrow up to 25% of total assets to purchase additional securities to enhance the total return of the portfolio. |
| Service Fee | A service fee of 0.40% of net asset value per annum is paid quarterly to Investment Advisors. |
| DRIP | Investors may elect to reinvest their distributions and receive additional units of the Fund. Any units acquired pursuant to the distribution reinvestment program qualify for the service fee. |
| Eligibility | Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs as Canadian property. |
| Redemption |
Annually on the second last business day of November, provided units are tendered by the last business day of October.
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Units may be redeemed at the option of the unitholders by tendering units of the Fund by the last business day of October for redemption on the second last business day of November ("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 December, 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 November.
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| Termination |
The Fund has no termination date. Investors may redeem their units at net asset value annually or sell their units on the TSX.
At a Special Meeting of unitholders held November 17, 2009, the Fund's original termination date of December 31, 2012 was cancelled. |
| Fair Investor Terms |
Strong corporate governance Commitment to low management fees and overall cost containment No entrenched management provisions and a prohibition against dilutive equity offerings |
| TSX Listing |
Units - RBN.UN |
| CUSIP |
Units - 095819108 |