Brompton Group

 

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Investment Objective

The Investment objectives of the Company are to acquire and maintain a diversified mortgage portfolio comprised primarily of Single Family Residential Mortgages that seeks to preserve capital and generate sufficient income to permit the Company to pay monthly distributions to Shareholders

Investment Strategy

  • Currently 100% of the mortgage portfolio is invested in Single Family Residential Mortgages (minimum of 80%)
  • Mortgage portfolio consists of a significant number of mortgages, diversified by term and property location
  • The portfolio mortgages are on properties pricipally located in major urban centres across Canada
  • The weighted average Loan-to-Value of the mortgage portfolio, excluding insured Single Family Residential Mortgages, will not exceed 80%, with no single mortgage having a Loan-to-Value of more than 85% at the time of funding
  • All of the portfolio mortgages are secured by real property 

Distributions

Distributions targeted at $0.083 per Common share per month ($0.75 per annum)

DRIP
Investors may elect to automatically reinvest their distributions in additional units of the Company and realize the benefits of compound growth. Any shares acquired pursuant to the distribution reinvestment program qualify for the service fee. Currently, no commissions or brokerage fees are allocated to plan participants. DRIP Plan

Transition
At a special meeting of holders (the “Shareholders”) of Class A Shares in the capital of the Corporation that was held on November 30, 2016, Shareholders approved an extraordinary resolution to transition the Company from the Canadian securities regulatory regime for investment funds to the Canadian securities regulatory regime for reporting issuers that are not investment funds (the “Public Company Regime”), together with related changes to the Company’s articles and material agreements to reflect the change in regulatory regime (the “Transition”).  The vote was conducted by a show of hands and proxies received by management in advance of the meeting indicated support of 99.7% in favour of the extraordinary resolution relating to the Transition.
 
The Transition was effective January 4, 2017 and did not change the investment objectives or investment strategies of the Company which are focused on single-family residential mortgages.  The Company believes the benefits of transitioning to the Public Company Regime include, but are not limited to, the ability to expand its investment opportunities by allowing new equity capital to be invested in uninsured mortgages, an expanded ability to raise new capital and the potential to adopt a measured increase in the use of leverage.  The Company has a successful investment strategy and the Transition, along with other operational changes, are expected to provide for the opportunity to grow earnings per share and dividends over time.
 

 

Symbol(s)

TSX : ERM

CUSIP

27890E204

Inception Date

Jun 28, 2013

Manager
Brompton Funds Limited

Mortgage Consultant & Mortgage Services Provider
MCAP Financial Corp.

Management Fee & Mortgage Servicing Fee
Total management fee and mortgage servicing fee of 1.0% of total assets per annum.  

Fair Investor Terms
Strong corporate governance
Commitment to low fees and overall operating cost containment

Eligibility
The Company is RRSP, DPSP, RRIF, RESP, and TFSA eligible.


 
PLEASE READ AND ACCEPT THESE IMPORTANT DISCLOSURES

You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or alternative Canadian trading platforms (an “exchange”). If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

This communication is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. The opinions contained in this report are solely those of Goldman Sachs Asset Management L.P. (“GSAM”) and are subject to change without notice. GSAM makes every effort to ensure that the information has been derived from sources believed to reliable and accurate. However, GSAM assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information. GSAM is under no obligation to update the information contained herein. The communication should not be regarded as a substitute for the exercise of your own judgment. Please read the fund’s offering documents before investing.

Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date December 15, 2015 and we assume no obligation to update or revise them to reflect new events or circumstances.

Fund holdings and allocations shown are unaudited, and may not be representative of current or future investments, should not be construed and research or investment advice, and are subject to risk.

Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or its securities. It should not be assumed that investment decisions made in the future will be profitable or will equal the performance of the securities discussed in this document.

Portfolio holdings may change by the time you view this. Portfolio holdings may not be representative of future investments. The securities discussed may not represent all of the portfolio's holdings and may not be deemed representative of the strategy’s future portfolio holdings. Future portfolio holdings may not be profitable.

The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

No part of this material may, without Brompton and GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an authorized recipient. This material is intended for Investment Advisor use only.

I confirm that I have read, understood, and accept the above disclosures.

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