Brompton Funds

Distributions received by the fund will be reinvested in additional units of the underlying income trusts on a tax-deferred basis. This investment methodology, known as compounding, is expected to generate high total returns for investors. Compounding enables the value of an investment to grow significantly over time by generating earnings that are then reinvested and generate their own earnings. In each subsequent period after the initial investment, investment earnings are added to the principal forming a larger base on which earnings may accumulate. In effect, distributions received by the Fund in one period earn additional distributions during each subsequent time period. As a result, total assets generally grow in each subsequent period. The effect of compounding typically accelerates over time as the total assets that are generating earnings grow more significantly in each subsequent period.

The effect of compounding is greatest when:
The reinvestment rate (yield generated by the investment) and compounding frequency (the number of compounding periods in a year) are higher. The income trusts included in this portfolio are well suited for compounding, because they generate the highest yields of all equity investments included in the S&P/TSX Composite Index and the majority of income trusts pay distributions on a monthly basis, which allows the asset base that earns distributions to grow 12 times during a year.

Date	Amount available for reinvestment
May 2006	$ 0.0763
June 2006	$ 0.0903
July 2006	$ 0.0723
August 2006	$ 0.0760
September 2006	$ 0.0863
October 2006	$ 0.0732
November 2006	$ 0.0775
December 2006	$ 0.1026
2006 Total	$ 0.6546