Brompton Funds

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Objectives To provide unitholders with a high level of monthly tax-advantaged distributions and the opportunity for capital appreciation
Distributions Paid monthly, click here for most recent distribution table. Distributions are expected to be primarily return of capital.
Portfolio An actively managed portfolio of investment grade corporate bonds and high yield corporate bonds.
Low Fees Management fee of 0.75% of total assets per annum, which includes fees payable to the Portfolio Manager. 2010 management expense ratio of 2.25% for the Class A units and 1.68% for the Class F units (excluding IPO commissions and issuance costs, interest expense and forward agreement fees).
Manager Brompton Funds Management Limited
Portfolio Manager Manulife Asset Management, the institutional asset management arm of Manulife Financial
Investment Approach Manulife Asset Management’s Approach to Corporate Bonds:
  1. Conservative approach with upside potential
    • Take advantage of high spreads in investment grade and high yield bonds
    • Minimize default risk – higher credit quality and well diversified
  2. Focus on best opportunities on a risk/return basis
  3. Reduce interest rate risk – low duration
  4. By buying corporate bonds at significant discounts in current environment, investors are expected to earn high current income and have opportunity to realize significant capital gains.
Enhanced Return Opportunity To generate capital gains and to provide additional income the portfolio manager expects to invest proceeds in additional corporate bonds and short overvalued government bonds (up to 1/3 of the portfolio).
Service Fee A service fee of 0.50% of NAV per Class A unit per annum is paid quarterly to Investment Advisors
Eligibility Eligible for RRSPs, DPSPs, RRIFs, RESPs and TFSAs as Canadian property
Redemption Annually on the second last business day of October provided units are tendered by the last business day of September [Click to expand]
Units may be redeemed at the option of the unitholders by tendering units of the Fund by the last business day of September for redemption on the second last business day of October ("Redemption Valuation Date"). Redemption of tendered units will be settled based on net assets 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 November, 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 valued at the bid price on the Redemption Valuation Date and any short positions will be valued at the ask price on the Redemption Valuation Date.
Termination The Fund has no termination date as investors may redeem their units at net assets per unit less expenses annually or sell their units on the TSX.
Issuer Bid/Market Repurchases The Fund may purchase up to 10% per annum of its outstanding units at prices up to net asset value per unit.
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 MBB.UN
CUSIP Class A - Unit 56502W104
Class F - Unit 56502W203