TORONTO, ONTARIO--(Marketwired - Jan. 21, 2014) - Brompton Funds Limited (the "Manager") is pleased to announce that in connection with the planned dissolution of the Brompton 2012 Flow-Through Limited Partnership (the "Partnership"), it will transfer all of the assets of the Partnership to Brompton Resource Fund ("BRF"), a class of Brompton Mutual Funds Limited in exchange for Series B Shares of BRF. The mutual fund rollover transaction will take place on a tax-deferred basis on or about February 26, 2014 after the close of business. In exchange for the Partnership's assets, Series B Shares of BRF will be issued to the Partnership and then distributed to limited partners by the Partnership. 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. The Partnership will be dissolved on or about March 14, 2014. As at January 16, 2014, the Net Asset Value of the Partnership was $17.99 per unit. This translates into an after-tax return on money at risk of approximately 12.1% (assuming a tax rate of 49.53%).(1)
The Brompton Resource Fund provides Canadian investors with exposure to a broad array of investments in the natural resource sectors. The Fund's investment objective is to provide the potential for long-term growth of capital and to a lesser extent, the production of income. The Brompton Resource Fund offers daily subscriptions and redemptions and investors also have the opportunity to switch tax-free into the Brompton Dividend & Income Fund, should investors wish to reduce their exposure to the resource sector. The Brompton Dividend & Income Fund produced a total return in 2013 of 21.5%, representing an 8.5% outperformance of the S&P/TSX Composite Total Return Index. The Portfolio Managers of both the Brompton Resource Fund and the Brompton Dividend & Income Fund are Laura Lau and Mike Clare, who are also the Portfolio Managers for the Brompton Flow-Through Limited Partnerships. The lead portfolio manager is Laura Lau, an award winning portfolio manager with over 20 years of experience.(2)
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 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.
About Brompton Funds
Brompton Funds, a division of Brompton Group, is an experienced investment fund manager operating since 2002. Brompton is focused on meeting the needs of investors by offering low cost, innovative products with client friendly terms and supported by strong corporate governance. 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 email@example.com or visit our website at www.bromptongroup.com.
(1) Return is unaudited, not annualized and assumes (i) $25.00 per unit is deducted by investors; (ii) highest marginal tax rate in Ontario; (iii) each unit has an ACB of nil; and (iv) disposition at January 16, 2014 NAV per unit; (2) To view a press release of the award visit 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.