Brompton Funds
| Objectives | To provide unitholders with a secure, low cost and convenient method of investing in gold, silver and platinum bullion on a Canadian dollar hedged basis |
| Portfolio | The net proceeds of the offering will be used to purchase approximately equal dollar amounts of each of physical gold, silver and platinum bullion. All of the Fund’s physical bullion will be stored on an allocated and segregated basis in the vaults of the Bank of Nova Scotia, and will be certified Good Delivery by a recognized international standard. A minimum of 90% of the net asset value will be invested in bullion and up to 5% of the net asset value may be invested in gold, silver or platinum certificates. |
| Low Fees | Management fee of 0.35% of net assets per annum. 2010 management expense ration of 0.89% (excluding interest expense and IPO issuance costs). |
| Manager/Portfolio Advisor | Brompton Funds Limited |
| Eligibility | Eligible for RRSPs, DPSPs, RRIFs, RESPs and TFSAs as Canadian property |
| Redemption |
Quarterly Redemption: Quarterly on the second last business day of January, April, July and October, (“Quarterly Redemption Date”). [Click to expand]
Units must be tendered for redemption on the last Business Day in the month prior to the applicable Quarterly Redemption date. Unitholders whose units are redeemed will receive a redemption price in an amount equal to 100% of the Net Asset value (less any costs and expenses associated with the redemption). Payment of the redemption price will be made on or before the tenth business day of the month immediately following the Quarterly Redemption Date.
Redemption for Physical Bullion:
In such a case each of gold, silver and platinum’s pro rata dollar share of the value of the redemption amount will be paid in increments of whole Good Delivery bars of each respective metal, with any remaining balance paid in cash. Any handling, delivery, in and out fees or any other expenses of such a redemption will be borne by the redeeming Unitholder. For the purposes of the Tax Act, the Precious Metals payable to Unitholders on a redemption of Units will be considered to have been disposed of at their fair market value by the Fund. Any income realized in respect of such a disposition may be paid to redeeming Unitholders (either in Precious Metals or cash, as appropriate) and will reduce the redemption price of their Units by the amount so paid.
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| Termination | The Fund has no termination date as investors may redeem their units at net asset value less expenses on a quarterly basis or sell their units on the TSX. |
| Issuer Bid/Market Repurchases | The Fund may purchase up to 10% 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 containment No entrenched management provisions and prohibitive against dilutive equity offerings. |
| TSX Listing |
Unit - PBU.UN |
| CUSIP |
Unit - 740174107 |