Brompton Funds

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Objectives

To provide unitholders with a high level of monthly distributions and the opportunity for capital appreciation.
Distributions Paid monthly click here for most recent distribution table
Portfolio Well diversified portfolio of income producing securities, including REITs, dividend-paying equities, investment grade fixed income, convertible debt and preferred shares. A maximum of 30% of portfolio may be invested in high-yield debt and a maximum of 10% in special situations which include foreign equities and non-dividend paying equities. Portfolio Summary
Low Fees Low management fee of 0.85% of net assets per annum, which includes fees payable to the Portfolio Manager

2010 management expense ratio of 1.37% (excluding interest expense and issuance costs of warrants).
Manager Brompton Funds Management Limited.
Portfolio Manager Manulife Asset Management, the institutional asset management arm of Manulife Financial
Investment Approach Manulife Asset Management will attempt to achieve strong risk-adjusted returns and a high level of monthly income by adhering to the following disciplined investment approach:
  1. active asset and sector allocation based on relative return and risk analysis;
  2. utilizing a fundamental "bottom-up" analysis of potential investments including meeting with management teams;
  3. emphasis on high quality securities, liquidity, capital preservation and broad diversification; and
  4. detailed in-house credit analysis of fixed income investments as well as third party and independent research.
Leverage The Fund may borrow up to 25% of total assets to purchase additional securities to enhance the total return of the portfolio.
Service Fee A service fee of 0.40% of net asset value per annum is paid quarterly to Investment Advisors.
DRIP Investors may elect to reinvest their distributions and receive additional units of the Fund. Any units acquired pursuant to the distribution reinvestment program qualify for the service fee.
Eligibility Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs as Canadian property.
Redemptions Annually on the second last business day of August, provided units are tendered by the last business day of July. Click here for more details.
At a Special Meeting of unitholders held June 9, 2008, the annual redemption date was amended from that described in the prospectus to the second last business day of August.

Units may be redeemed at the option of the unitholders by tendering units of the Fund by the last business day of July for redemption on the second last business day of August ("Redemption Valuation Date"). Redemption of tendered units will be settled based on net asset value 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 September, 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 equal to the weighted average trading price of such securities over the last three business days of August.

Please note, the annual redemption date was amended at a unitholder meeting on June 9, 2008, to August of each year.
Termination The Fund has no termination date. Investors may redeem their units at net asset value annually or sell their units on the TSX.
Issuer Bid / Market Purchases The Fund may purchase up to 10% per annum of outstanding units at prices up to net asset value per unit.
Fair Investor Terms Strong corporate governance
Commitment to low management fees and overall cost containment
No entrenched management provisions and a prohibition against dilutive equity offerings
TSX Listing Trust Units - VIP.UN
CUSIP Trust Units - 11221R100