Canadian High Income Equity Fund
CANADIAN HIGH INCOME EQUITY FUND HAS TERMINATED
Toronto, June 12, 2024 – (TSX: CIQ.UN) Brompton Funds Limited (the “Manager”), manager of Canadian High Income Equity Fund (the “Fund”), announced today that the Fund will terminate on or about August 15, 2024 (“Termination Date”). This news release serves as notice of termination to unitholders of the Fund in accordance with the amended and restated declaration of trust governing the Fund (the “Declaration of Trust”). The Board of Directors of the Manager determined that the termination of the Fund is in the best interest of the unitholders of the Fund for the following reasons: (i) the Fund’s small size and increasing MER; (ii) limited ability to increase fund size due to the trading discount; and (iii) reduced liquidity for investors.
The Fund has previously declared a distribution of $0.04 per unit payable to unitholders of record on June 28, 2024 with a payment date on or before July 15, 2024. There will be no other monthly distributions declared by the Fund. In accordance with the Declaration of Trust, after all liabilities have been satisfied or provided for, the net assets of the Fund will be distributed in cash to unitholders of the Fund on a pro rata basis on or about August 16, 2024. As the units trade in the “book-entry-only system” of CDS, unitholders need not take any action with respect to receiving their proceeds.
Units of the Fund will continue to be listed and traded on the TSX until the Termination Date on August 15, 2024
About Brompton Funds
Founded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment funds. 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.
You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading platform (an “exchange”). If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them. 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 Fund in the public filings available at www.sedarplus.ca. Investment 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 Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. 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.
Portfolio Manager
Bloom Investment Counsel, Inc. (“Bloom”) was established in 1985 and specializes in the management of segregated investment portfolios for wealthy individuals, corporations, foundations, institutions and trusts. In addition to its conventional investment management business, Bloom currently manages specialty high-yield equity portfolios comprised of dividend-paying common equity securities, income trusts, and real estate investment trusts. Bloom currently provides investment management services to four TSX-listed, closed-end portfolios.
This webpage is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. The opinions contained in this report are solely those of Brompton Funds Limited (“BFL”) and are subject to change without notice. BFL makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, BFL assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information. BFL is under no obligation to update the information contained herein. The information should not be regarded as a substitute for the exercise of your own judgment. Please read the prospectus before investing.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses with owning shares 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 fund in the public filings available at www.sedarplus.ca. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Information contained on this webpage was published at a specific point in time. Upon publication, it is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the funds, to the future outlook of the funds and anticipated events or results and may include statements regarding the future financial performance of the funds. 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.
Growth of $10,000(1)
Annual Compound Returns(1)
| YTD | 1-Year | 3-Year | 5-Year | 10-Year | Since Inception(3) | Since Inception(4) | Since Inception(2) | |
|---|---|---|---|---|---|---|---|---|
| Canadian High Income Equity Fund |
Year-by-Year Returns
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Canadian High Income Equity Fund | 4.3% | (6.4%) | 18.5% | (2.1%) | 19.6% | (20.5%) | 2.0% | 29.1% | (12.9%) | (2.3%) | 11.9% |
Returns for Canadian High Income Equity Fund are unaudited.
This webpage is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. The opinions contained in this report are solely those of Brompton Funds Limited (“BFL”) and are subject to change without notice. BFL makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, BFL assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information. BFL is under no obligation to update the information contained herein. The information should not be regarded as a substitute for the exercise of your own judgment. Please read the prospectus before investing.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses with owning shares 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 fund in the public filings available at www.sedarplus.ca. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Information contained on this webpage was published at a specific point in time. Upon publication, it is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document and to other matters identified in public filings relating to the funds, to the future outlook of the funds and anticipated events or results and may include statements regarding the future financial performance of the funds. 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.
Distributions
The actual breakdown of distributions for tax purposes will be provided to unitholders annually in March as soon as possible following receipt of the information from the Fund’s individual holdings. This information will also be posted on the website as soon as it is available.
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.
DRIP
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth. Any units acquired pursuant to the distribution reinvestment program qualify for the service fee. DRIP Plan
Tax Allocation
The following information is applicable to holders who, for the purposes of the Income Tax Act (Canada), are resident in Canada and hold trust units as capital property. If this is not the case, a tax advisor should be consulted.
Holders of trust units outside of a RRSP, DPSP, RRIF, RESP or TFSA should expect to receive a T3 slip from their investment dealer. T3 supplementary slips will indicate Other Income (Investment Income and Non-Investment Income) in Box 26, Foreign Non-Business Income in Box 25, Capital Gains in Box 21 and Eligible Dividend Income in Box 49. Dividend income is subject to the standard gross up and federal dividend tax credit rules. The return of capital component is a non-taxable amount that serves to reduce the adjusted cost base of the Fund units and is reported in Box 42.
| Record Date | Payment Date | Capital Gains | Eligible Dividend | Foreign Non- Business Income | Foreign Non- Business Income Tax Paid | Investment Income | Return of Capital | Total Distribution |
|---|---|---|---|---|---|---|---|---|
| Jun 28, 2024 | Jul 15, 2024 | * | * | * | * | * | * | 0.04000 |
| May 31, 2024 | Jun 14, 2024 | * | * | * | * | * | * | 0.04000 |
| Apr 30, 2024 | May 14, 2024 | * | * | * | * | * | * | 0.04000 |
| Mar 28, 2024 | Apr 12, 2024 | * | * | * | * | * | * | 0.04000 |
| Feb 29, 2024 | Mar 14, 2024 | * | * | * | * | * | * | 0.04000 |
| Jan 31, 2024 | Feb 14, 2024 | * | * | * | * | * | * | 0.04000 |
| Dec 29, 2023 | Jan 15, 2024 | 0.00000 | 0.00186 | 0.00000 | 0.00000 | 0.00000 | 0.03814 | 0.04000 |
| Nov 30, 2023 | Dec 14, 2023 | 0.00000 | 0.00186 | 0.00000 | 0.00000 | 0.00000 | 0.03814 | 0.04000 |
| Oct 31, 2023 | Nov 14, 2023 | 0.00000 | 0.00186 | 0.00000 | 0.00000 | 0.00000 | 0.03814 | 0.04000 |
| Sep 30, 2023 | Oct 16, 2023 | 0.00000 | 0.00186 | 0.00000 | 0.00000 | 0.00000 | 0.03814 | 0.04000 |
| Aug 31, 2023 | Sep 15, 2023 | 0.00000 | 0.00186 | 0.00000 | 0.00000 | 0.00000 | 0.03814 | 0.04000 |
| Jul 31, 2023 | Aug 15, 2023 | 0.00000 | 0.00186 | 0.00000 | 0.00000 | 0.00000 | 0.03814 | 0.04000 |
| Total | 0.00000 | 0.01116 | 0.00000 | 0.00000 | 0.00000 | 0.22884 | 0.48000 | |
