Brompton Group

 

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Objectives
To provide a variable level of monthly cash distributions and the opportunity to participate in gains in the value of the investment portfolio.

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.

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.

A "bottom up" , fundamental investment approach is then employed 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.

DRIP
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth. Any units 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

Redemption
Annually on the second last business day of November, provided units are tendered by the last business day of October.  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.


 

Symbol(s)

TSX : RBN.UN
OTC : BLUBF

CUSIP

095819108

Inception Date

Sep 17, 1997

Administrator

Brompton Funds Limited

Investment Manager

Bloom Investment Counsel, Inc.

Management Fee

Combined annual administration and investment management fee of 1.0% of net asset value per annum. Management expense ratio of 1.70% for the period ended December 31, 2016.

Service Fee

A service fee of 0.40% of net asset value per annum is paid quarterly to Investment Advisors.

Issuer Bid/Market Repurchases

The Fund may purchase up to 10% of the public float per annum at prices up to net asset value per unit.

Fair Investor Terms

Strong corporate governance
Commitment to low fees and overall containment
No entrenched management provisions and a prohibition against dilutive equity offerings.

Eligibility

Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs.

Termination/Liquidity

The Fund has no termination date as investors can redeem their shares at net asset value less expenses annually. For daily liquidity investors can sell their units on the TSX.


 
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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