COMPLETES MUTUAL FUND ROLLOVER
Toronto, February 14, 2017: Brompton Funds Limited (the “Manager”) is pleased to announce the completion of the tax-deferred transfer of assets of Brompton 2015 Flow-Through Limited Partnership (the “Partnership”). The Partnership has transferred all of its assets to Brompton Resource Class (“BRF”), a class of Brompton Mutual Funds Limited in exchange for Series B Shares of BRF. The Partnership will be dissolved on or about February 28, 2017. Series B Shares of BRF were issued at a net asset value per share of $0.7151. The final net asset value per unit of the Partnership was $23.5274 which represents an after-tax return of 48.2% over the life of the Partnership(1). Partnership units were converted at a rate of 32.900853 Series B Shares of BRF for each Partnership unit. The Series B Shares will offer daily liquidity through FundServ as soon as possible once investment advisors have reconciled positions with FundServ, under fund code CAM 151.
BRF provides Canadian investors with exposure to a broad array of investments in the natural resource sectors. BRF’s investment objective is to provide the potential for long-term growth of capital and to a lesser extent, the production of income. BRF offers daily subscriptions and redemptions. The portfolio managers of BRF are Laura Lau and Mike Clare, who are also the portfolio managers for the Brompton Flow-Through Limited Partnerships.
BRF will not charge a fee or commission when the Series B shares are issued under the mutual fund rollover transaction and will not charge redemption fees in respect of such Series B Shares.
BRF will not issue certificates for Series B Shares. BRF is a fund class of Brompton Mutual Funds Limited which is a mutual fund corporation incorporated under the laws of Canada. BRF securities are sold under a continuous offering prospectus and BRF is a reporting issuer for securities law purposes in all provinces and territories of Canada. The prospectus contains important information about BRF, including investment strategy, fees and risks. Brompton encourages all investors to read the prospectus for all other terms and conditions of BRF
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton’s investment solutions include TSX traded funds, mutual funds and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.
(1) The after-tax return is unaudited and assumes: (i) $25.00 per unit is deducted by investors; (ii) highest marginal tax rate in Ontario; (iii) each unit has an adjusted cost base of nil; and (iv) disposition at the February 13, 2017 net asset value per unit. The pre-tax return of the Partnership was 2.0% from inception to February 13, 2017 based on net asset value per unit. There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the Partnership in the public filings available at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read BRF’s prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to the Partnership, BRF, to the future outlook of the Partnership and BRF and anticipated events or results and may include statements regarding the future financial performance of the Partnership and BRF. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
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(1) The distribution was automatically reinvested in additional units. Immediately following the issuance, the units of the Fund were automatically consolidated and, as a result, unitholders held the same number of units after the distribution as they held before it. The adjusted cost base of a holder’s units would be increased by the amount of the distributions reinvested in units.
*Tax treatment of cash distributions is determined and published in February of the calendar year following the payment of said distribution.
T5013 Federal tax forms and RL 15 Quebec tax forms will be issued by investment dealers to all unitholders, as applicable, based on the following per unit tax information.
This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.
T5013(A) | R15 | Description | Total | Per Unit |
---|---|---|---|---|
105 | 26 | Ltd. Partner's at risk amt | 4,425,065 | 12.41782 |
N/A | 45 | Eligible taxable capital gains amount on resource property | 115,712 | 0.32472 |
N/A | 14 | Partnership's total gross income | 28,237 | |
128 | 7 | Interest from Cdn Sources | 1,510 | 0.00424 |
132 | 6A | Actual amount of Eligible Dividends | 26,727 | 0.07500 |
210 | 15A | Carrying charges | 44,897 | 0.12599 |
151 | 10 | Capital gains(losses) (R15: used to calculate the deduction) | ||
151 | 12 | Capital gains(losses) (R15:not used to calculate the deduction) | 541,271 | 1.51894 |
N/A | 24A | Member Corp's share of debt | ||
N/A | 24B | Member Corp's share of qualified property | ||
N/A | 24C | Member Corp's share of total assets | ||
N/A | 27 | Limited Partnership Loss | ||
190 | 60 | Cdn exploration expense - renuciation | 0 | 0.00000 |
194 | N/A | Amount - Exp qualifying for ITC | 0 | 0.00000 |
197 | N/A | BC - Expenses - Tax Credit | 0 | 0.00000 |
200 | N/A | ON - Expenses - Tax Credit | 0 | 0.00000 |
N/A | 53 | Limited-recourse amounts |
T5013 Federal tax forms and RL 15 Quebec tax forms will be issued by investment dealers to all unitholders, as applicable, based on the following per unit tax information.
This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.
This tax guide contains tax information relating to Forms T5013 and RL 15 which will assist you in preparing your 2015 income tax return: Brompton Funds Flow-Through Tax Guide 2016 Tax Year
T5013(A) | R15 | Description | Total | Per Unit |
---|---|---|---|---|
105 | 26 | Ltd. Partner's at risk amt | 4,685,627 | 13.14902 |
N/A | 45 | Eligible taxable capital gains amount on resource property | 1,494,642 | 4.19433 |
N/A | 14 | Partnership's total gross income | 2,030 | |
128 | 7 | Interest from Cdn Sources | 2,030 | 0.00570 |
132 | 6A | Actual amount of Eligible Dividends | 0 | 0.00000 |
210 | 15A | Carrying charges | 372,947 | 1.04658 |
151 | 10 | Capital gains(losses) (R15: used to calculate the deduction) | ||
151 | 12 | Capital gains(losses) (R15:not used to calculate the deduction) | 4,162,024 | 11.67966 |
N/A | 24A | Member Corp's share of debt | ||
N/A | 24B | Member Corp's share of qualified property | ||
N/A | 24C | Member Corp's share of total assets | ||
N/A | 27 | Limited Partnership Loss | ||
190 | 60 | Cdn exploration expense - renuciation | 0 | 0.00000 |
194 | N/A | Amount - Exp qualifying for ITC | 0 | 0.00000 |
197 | N/A | BC - Expenses - Tax Credit | 0 | 0.00000 |
198 | N/A | BC - Expenses - Tax Credit | 0 | 0.00000 |
200 | N/A | ON - Expenses - Tax Credit | 0 | 0.00000 |
N/A | 53 | Limited-recourse amounts | 0 |
T5013 Federal tax forms and RL 15 Quebec tax forms will be issued by investment dealers to all unitholders, as applicable, based on the following per unit tax information.
This information is of a general nature only and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.
This tax guide contains tax information relating to Forms T5013 and RL 15 which will assist you in preparing your 2015 income tax return: Brompton Funds Flow-Through Tax Guide 2015 Tax Year
T5013(A) | R15 | Description | Total | Per Unit |
---|---|---|---|---|
105 | 26 | Ltd. Partner's at risk amt | 9,475,121 | 26.58952 |
N/A | 45 | Eligible taxable capital gains amount on resource property | 283,210 | 0.79476 |
N/A | 14 | Partnership's total gross income | 14,885 | |
128 | 7 | Interest from Cdn Sources | 14,885 | 0.04177 |
132 | 6A | Actual amount of Eligible Dividends | 0 | 0.00000 |
210 | 15A | Carrying charges | 404,023 | 1.13379 |
151 | 10 | Capital gains(losses) (R15: used to calculate the deduction) | ||
151 | 12 | Capital gains(losses) (R15:not used to calculate the deduction) | 566,421 | 1.58952 |
N/A | 12-1 | Capital gains (or losses) on property other than resource property | 0 | 0.00000 |
N/A | 24A | Capital gains (or losses) on on resource property | 566,421 | 1.58952 |
N/A | 24B | Member Corp's share of debt | ||
N/A | 24C | Member Corp's share of qualified property | ||
N/A | 27 | Member Corp's share of total assets | ||
N/A | 60 | Limited Partnership Loss | ||
190 | N/A | Cdn exploration expense - renuciation | 8,562,379 | 24.02814 |
194 | N/A | Amount - Exp qualifying for ITC | 3,774,860 | 10.59318 |
197 | N/A | BC - Expenses - Tax Credit | 0 | 0.00000 |
198 | N/A | BC - Expenses - Tax Credit | 992,500 | 2.78520 |
200 | 53 | ON - Expenses - Tax Credit | 400,200 | 1.12306 |
N/A | 50 | Limited-recourse amounts | 0 | 0.00000 |
201 | 51 | Number of units acquired | 356,348 | |
202 | 52 | Cost per unit | 25.00 | |
203 | Total cost of units | 8,908,700 |
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