Brompton Funds
Investment Mandate
The Fund was created to invest in an equal-weight, diversified portfolio consisting of 15 large-capitalization technology companies that are included in the S&P 500 or S&P/TSX 60 Indices. Equal weight approach means no large exposure to any single issuer; US dollar exposure hedged to Canadian.
Attractive Monthly Distributions
Initial target monthly distribution of $0.054 per unit; $0.65 per unit p.a., funded through dividends and covered call writing on up to 25% of the portfolio.
Canadians are Underweight Tech
Tech is among the smallest sectors within the S&P/TSX 60, but is the largest S&P 500 sector. Investors need to look beyond Canada for exposure to this important global sector.
Tech Positioned to Benefit from US & Emerging Markets
During periods of US economic expansion since 1980, US corporate spending for Tech equipment and software has grown at over twice the rate of growth in spending for all other capital goods. Additionally, large-cap Tech companies provide investors with an attractive opportunity to participate in high-growth emerging markets, with 38% of the tech sector’s revenue coming from emerging and developing markets.
Compelling Value and Strong Fundamentals in the Tech Sector
Tech companies are currently valued at an attractive discount to Canadian equities on a price-to-earnings basis. Companies in the tech sector have strong balance sheets, with growing earnings and cash flow.
Low Fees
Management fee of 0.75% of NAV per annum.
Strong Corporate Governance
Managed by Brompton Funds Limited
Liquidity
TSX listing
Annual redemptions
Market repurchases
| TSX Symbol (click for quote) | TLF.UN |
| NAV (Feb 21, 2012) |
$9.16
The basic net asset value per unit is calculated by dividing the net assets of the Fund, which consists of total assets less the aggregate value of the liabilities, not including issued but unexercised warrants, by the total number of units outstanding.
Diluted net asset value per unit assumes the exercise of all outstanding warrants if the closing price per unit on the valuation date is in excess of the warrant exercise price. Total net assets would be increased by the amount of cash received (all warrants outstanding multiplied by the warrant exercise price, less costs) from exercise of the warrants and total units outstanding would be increased by the number of units issued pursuant to the exercise of the warrants. If the closing price per unit on the valuation date is less than the warrant exercise price, the basic and diluted net asset value per unit will be the same.
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| Inception Date | May 20,2011 |
| Monthly Distribution (Feb 29, 2012) | $0.054 |
| Current Yield | 7.0% per unit (based on current monthly distribution annualized/closing market price as of 2/22/2012) |
| Total Assets (Dec 31, 2011) | $67 million |
