Brompton Advantaged Tactical Yield Fund

September 30, 2010 14:38 ET

Brompton Advantaged Tactical Yield Fund Announces Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Sept. 30, 2010) - 

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Brompton Funds Management Limited (the "Manager") is pleased to announce that Brompton Advantaged Tactical Yield Fund (the "Fund") has filed a preliminary prospectus for a public offering of Units at a price of $12.00 per Unit. 

The Fund's Investment Objectives are to provide investors with tax-efficient monthly distributions and the opportunity for capital appreciation through exposure to a portfolio that will be tactically invested in Fixed Income and Dividend Paying Equity securities. Distributions are initially targeted to be $0.72 per annum per Unit, paid monthly, consisting primarily of return of capital and representing a yield on the issue price of 6.0% per annum.

The Manager is pleased to announce that MFC Global Investment Management (Canada) ("MFC Global Investment Management") has been selected to manage the portfolio. MFC Global Investment Management and its affiliates have investment offices in 16 countries worldwide, and manage assets of approximately $117 billion for external clients, including over $49 billion in fixed income securities.

The initial portfolio is expected to be comprised of approximately 70% High Yield Bonds, 20% Dividend Paying Equities, and 10% Investment Grade Bonds. MFC Global Investment Management believes that the following factors provide a positive outlook for the portfolio:

  1. The current low interest rate environment is expected to continue; investments with high yields will be actively sought after, supporting prices and compressing yield;
  2. Many North American companies have built up large cash positions and refinanced debt at favourable rates, improving their credit strength which is positive for High Yield Bonds;
  3. The ongoing recovery should gradually continue, supporting growth in corporate earnings and, by extension, the ability to generate cash and increase dividends.

The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC World Markets Inc. and includes BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Mackie Research Capital Corporation, Raymond James Ltd., Dundee Securities Corporation, Canaccord Genuity Corp., Macquarie Private Wealth Inc., GMP Securities L.P., Desjardins Securities Inc., Manulife Securities Incorporated and Wellington West Capital Markets Inc.

For further information, please contact your financial advisor, call our investor relations line at 416-642-9051, (toll-free at 1-866-642-6001) or visit 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.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful. 

Contact Information

  • Brompton Funds Management Limited
    Chris Cullen
    Senior Vice-President
    416-642-9064