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 November 30, 2012

To provide holders of Class A shares with regular monthly cash distributions targeted to be $0.10, representing a yield of 8.0% based on issue price and with 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-2 by DBRS
Portfolio Common shares of the Big Six Canadian banks. The Company may from time to time write covered call options on or cash covered put options in respect of the shares held in the portfolio to generate additional returns.
Low Fees Management fee of 0.55% of the net asset value per annum, which includes fees payable to Highstreet

2007 annualized management expense ratio of 0.94%
Manager Brompton Funds Management Limited
Option Advisor Highstreet Asset Management Inc.
Rebalacing 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 Canadian banks in the portfolio. As a result, the portfolio may contain the common shares of less than six Canadian banks.
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:
Cconcurrent redemption at NAV on the second last business day of December, provided that both Class A shares and Preferred shares are surrendered at least 10 business days prior to the second last business day of December.
Maturity Preferred Shares:
On November 30, 2012, 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 November 30, 2012, 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 holding Class A shares
Eligibility Eligible for RRSPs, DPSPs, RRIFs and RESPs as Canadian property.
Termination November 30, 2012
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 - SBC.PR.A
Class A Shares - SBC
CUSIP Preferred Shares - 11221E208
Class A Shares  - 11221E109