Brompton Funds

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Objectives To provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions of $0.13125, representing a yield of 5.25% based on issue price and to return the original issue price to Preferred Shareholders on redemption on April 30, 2014.

To provide holders of Class A shares with regular monthly cash distributions targeted to be $0.075, representing a yield of 6.0% 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-4(high) by DBRS
Portfolio Common shares of Canada's four largest publicly-listed life insurance companies. The portfolio will be rebalanced at least once per 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 one of the investments in the portfolio. The Company may from time to time write covered call options to enhance total returns.
Click here to review the Investment Objectives
Low Fees 0.60% of the net asset value per annum, which includes fees payable to Highstreet

2010 management expense ratio of 1.34% (excluding cost of leverage 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 April, provided that both Preferred shares and Class A shares are surrendered for retraction at least 10 business days prior.
Redemption Preferred Shares:
On April 30, 2014, equal to the lesser value of (i) $10.00 plus any accrued and unpaid distributions and (ii) the NAV of the Company on that date divided by the number of Preferred shares then outstanding.

Class A Shares:
On April 30, 2014, equal to the greater of (i) the NAV per Unit (consisting of one Preferred Share and one Class A Share) minus $10.00 plus any accrued and unpaid distribution on the Preferred shares and (ii) nil.

Service Fee 0.40% of NAV of the Class A shares per annum is paid quarterly to investment advisors whose clients hold Class A shares
Eligibility Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs as Canadian property.
Termination April 30, 2014
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 - LCS.PR.A
Class A Shares - LCS
CUSIP Preferred Shares - 112216205
Class A Shares - 112216106