Approximately equal weight portfolio of common shares of Canada’s four largest publicly-listed life insurance companies (“LifeCos”)
LifeCos have historically delivered strong positive returns during periods of rising long term interest rates
Attractive distributions on Class A and Preferred Shares
Potential for capital appreciation for Class A shares due to leveraged exposure to the LifeCos, which have a dominant market position in Canada and significant international operations
Split Share Structure
5-year term, subject to extension for periods of up to five years, as determined by the board of directors
Quarterly cumulative preferred distributions (primarily eligible Canadian dividends)
Dividend resets at end-of-term extension, based on comparable market yields, without complicated reset formulas
Shareholder’s option to redeem at end-of-term, with no restrictions.
Class A Shares:
Monthly distributions (primarily return of capital)1
Opportunity for capital appreciation
Shareholder’s option to redeem at end-of-term, with no restrictions
To provide holders of Preferred shares with fixed cumulative preferrential quarterly cash distributions and to return the original issue price on the maturity date.
To provide holders of Class A shares with regular monthly cash distributions1 and the opportunity for capital appreciation.
Management fee of 0.60% of net assets per annum
Managed by Brompton Funds Limited, an investment fund manager since 2002.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment fund on the Toronto Stock Exchange or alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.
This document 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 Brompton Funds Limited (“BFL”) and are subject to change without notice. BFL makes every effort to ensure that the information has been derived from sources believed to reliable and accurate. However, BFL assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information. BFL is under no obligation to update the information contained herein. The information should not be regarded as a substitute for the exercise of your own judgment. Please read the Funds’ publicly filed documents before investing.
Class A NAV : $5.43
Preferred Redemption Price : $10.13
Unit NAV : $15.56
Class A1 (monthly) : $0.07500
Preferred (quarterly) : $0.14375
Class A1 : $0.90000
Preferred : $0.575
Class A : $5.50 (Oct 21, 2016)
Preferred : $10.28 (Oct 21, 2016)
Class A1 : 16.40%
Preferred : 5.60%
Total Assets (Sep 30, 2016)
(1) No cash distributions will be paid on the Class A Shares if, after the payment of the distribution by the Company, the NAV per Unit would be less than $15.00.
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.