Brompton Funds
| Objectives |
To provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions of 0.13125%, representing a yield of based on issue price and to return the original issue price to Preferred Shareholders on redemption on November 29, 2013
To provide holders of Class A shares with regular monthly cash distributions targeted to be $0.10, representing a yield of 8% per annum based on issue price and the opportunity for growth in net asset value per Class A share |
| Distributions | Click here to see the most recent distribution table. |
| Credit Rating | Preferred shares rated Pfd-3 by DBRS |
| Portfolio |
The portfolio will be rebalanced, at least once a year, to adjust for changes in market value of investments and to reflect the impact of a merger, acquisition or other significant event affecting any of the investments in the portfolio.
Common shares of Canada's four largest LifeCos and Big Six Banks. The Company may from time to time write covered call options to generate additional returns. |
| Low Fees |
Management fee of 0.60% of the net asset value per annum, which includes fees payable to Highstreet 2010 management expense ratio of 0.96% (excluding the cost of leverage of provided by the Preferred shares). |
| Manager | Brompton Funds Limited |
| Options Advisor | Highstreet Asset Management Inc. |
| Rebalancing Criteria | The portfolio will be rebalanced (i) at least annually, to adjust for changes in market value of investments; and (ii) to reflect the impact of a merger, acquisition or other significant corporate event of or affecting one or more of the securities in the portfolio. |
| Retraction Privileges |
Monthly: Preferred shares [Click to expand]
may be retracted on a monthly basis by surrendering the Preferred shares at least 10 business days prior to the retraction date which is the second last business day of the month. The retraction price per Preferred Share will be equal to 96% of the lesser of i) the NAV per Unit determined as of the relevant retraction date less the cost to the Company of the purchase of a Class A Share for cancellation, and (ii) $10.00.
Class A shares [Click to expand]
may be retracted on a monthly basis by surrendering the Class A shares at least 10 business days prior to the retraction date which is the second last business day of the month. The retraction price per Class A shares will equal 96% of the difference between (i) the NAV per Unit determined as of the relevant retraction date, and (ii) the cost to the Company of the purchase of a Preferred Share for cancellation, including commissions and such other costs to fund the purchase of the Preferred shares.
Annually:Concurrent redemption at NAV on the second last business day of November, provided that both Class A and Preferred shares are surrendered at least 10 business days prior. |
| Service Fee | 0.40% of NAV of the Class A shares per annum is paid quarterly to investment advisors holding Class A shares at the end of each calendar quarter. |
| Eligibility | Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs as Canadian property. |
| Termination | November 29, 2013 |
| Fair Investor Terms |
Strong corporate governance Commitment to low fees and overall cost containment No entrenched management provisions and a prohibition against dilutive equity offerings. |
| TSX Listing |
Preferred Shares - LBS.PR.A Class A Shares - LBS |
| CUSIP |
Preferred Shares - 53184C118 Class A Shares - 53184C100 |