TORONTO, ONTARIO -- (Marketwired) -- 09/28/17 -- (TSX: SBC)(TSX: SBC.PR.A) Brompton Split Banc Corp. (the "Fund") announces that the distribution rate for the Preferred Shares for the 5 year term from December 1, 2017 to November 29, 2022 will be $0.50 per annum (5.0% on the original issue price of $10) payable quarterly. The Preferred Share distribution rate is based on current market rates for preferred shares with similar terms. In addition, the Fund intends to maintain the targeted monthly Class A Share distribution rate at $0.10 per Class A Share. The Fund previously announced the extension of the term of the Class A Shares and the Preferred Shares from November 29, 2017 to November 29, 2022. The term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until November 29, 2022. Since inception in November 2005 to August 31, 2017, the Preferred share has delivered an attractive 5.1%(1) per annum return.
Since inception and over the 1, 3, 5 and 10 year periods to August 31, 2017, the Class A share has significantly outperformed both the S&P/TSX Capped Financials Index and the S&P/TSX Composite Index as shown in the table below.
----------------------------------------------------------------------------
Since
Annual Compound Returns 1-Year 3-Year 5-Year 10-Year Inception
----------------------------------------------------------------------------
Brompton Split Banc Corp. - Class A 20.5% 7.9% 19.3% 10.3% 11.1%
----------------------------------------------------------------------------
S&P/TSX Capped Financials Index 15.8% 7.1% 14.2% 7.0% 8.1%
----------------------------------------------------------------------------
S&P/TSX Composite Index 7.2% 2.1% 8.1% 4.1% 6.1%
----------------------------------------------------------------------------
Since inception to August 31, 2017, Class A shareholders have also received cash distributions of $13.65 per share. Class A shareholders have the option to benefit by reinvesting their cash distributions in a distribution reinvestment plan ("DRIP") which is commission free to participants. Class A shareholders can enroll in the DRIP program by contacting their investment advisor.
Brompton Split Banc Corp. invests in a portfolio, on an approximately equal weight basis, in common shares of six Canadian Banks: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank.
In connection with the extension, shareholders who do not wish to continue their investment in the Fund, may retract their Preferred Shares or Class A Shares on November 29, 2017 pursuant to a special retraction right and receive a retraction price that is calculated in the same way that such price would be calculated if the Fund were to terminate on November 29, 2017. Pursuant to this option, the retraction price may be less than the market price if the security is trading at a premium to net asset value. Notice must be provided to your investment dealer by October 31, 2017 at 5:00 p.m. (Toronto time) in order to exercise this right; however, investment dealers may have earlier deadlines.
About Brompton Funds
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) Please see www.bromptongroup.com for returns for all periods.
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 associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the funds. You can find more detailed information about the fund in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
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 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.
Contacts:
Brompton's investor relations line
416-642-6000 (toll-free at 1-866-642-6001)
info@bromptongroup.com
www.bromptongroup.com
