Brompton 2008 Flow-Through LP

Brompton 2008 Flow-Through LP

November 13, 2009 14:33 ET

Brompton 2008 Flow-Through LP Selects Front Street Resource Fund for Mutual Fund Rollover

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) - Brompton Funds Management Limited (the "Manager") is pleased to announce that it has selected Front Street Resource Fund (the "Rollover Fund") as the rollover mutual fund for the Brompton 2008 Flow-Through LP (the "Partnership"). Front Street is an experienced manager of resource oriented investments and offers an established mutual fund platform; as such the Manager believes the Rollover Fund provides investors with an attractive means to continue holding resource investments. Investors will roll into the Rollover Fund at the then current net asset value and should they choose to redeem, they will receive the then current net asset value per share upon redemption. The mutual fund rollover transaction will take place on a tax-deferred basis on or about December 10, 2009 after the close of business. In exchange for the partnership's assets, Series B Shares of the Rollover Fund will be issued to the Partnership and then distributed to limited partners by Brompton 2008 Flow-Through LP. The Rollover Fund 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. The Partnership will be dissolved on or about December 17, 2009.

The Partnership has performed very well in light of the turbulent markets of the past year. Based on actual and expected tax savings on the resultant money-at-risk, unitholders have achieved an after-tax annualized return of approximately 20%. The performance has come from the portfolio manager's disciplined investment approach and its unwillingness to invest simply for the benefit of the tax deduction. In January 2009, the Partnership returned $9.45 of capital to investors rather than invest in lower quality flow-through shares in the fourth quarter of 2008. This amount combined with the current net asset value per unit results in a total value of $22.59 per unit.

The Rollover Fund: Front Street Resource Fund is advised by Front Street Investment Management Inc. The Rollover Fund's investment objective is to maximize capital appreciation by investing in small and medium-sized business entities in a range of natural resource sector industries, including base and precious metal mining and exploration, and in energy-related industries. 

The Rollover Fund will not issue certificates for Rollover Fund shares. Front Street Resource Fund is a fund class of Front Street Mutual Funds Limited which is a mutual fund corporation incorporated under the laws of Canada. The Rollover Fund securities are sold under a continuous offering prospectus, a copy of which will be mailed to each Limited Partner. The Rollover Fund is a reporting issuer for securities law purposes in all provinces and territories of Canada. The prospectus contains important information about the Rollover Fund, including investment strategy, fees and risks. Brompton encourages all investors to read the prospectus for all other terms and conditions of the Rollover Fund.

Redemption Feature: The Series B Shares issued under the Mutual Fund Rollover Transaction may be redeemed daily through FundServ under FundServ Code "FSC401" once the individual holder's investment advisor has reconciled the client's positions, which is expected to be shortly after the rollover is completed. Series B Shares are in book entry only form. Consequently, limited partners of the Partnership who want to redeem their Series B Shares must contact their brokers or dealers to exercise the redemption feature.

For further information, please contact Brompton by calling 416-642-9051 (toll-free at 1-866-642-6001), via e-mail at info@bromptongroup.com or by visiting our website at www.bromptongroup.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at www.sedar.com. 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.

Forward-looking statements in this press release include among other things, the opinion of the portfolio manager. While we consider these assumptions to be reasonable based on information currently available to the portfolio manager, they may prove to be incorrect. There are no assurances that the actual outcomes will match the forward-looking statements as a result of a number of risks and uncertainties that could cause actual results to differ materially from what we currently expect. Other than as required under securities laws, we do not undertake to update this information at any particular time.

Contact Information

  • Brompton Funds Management Limited
    David Roode
    Senior Vice President
    416-642-6008