Enhanced Dividend Split Corp.

Enhanced Dividend Split Corp.

October 31, 2006 09:38 ET

Brompton Funds Announces Initial Public Offering of Enhanced Dividend Split Corp.

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) - Brompton Funds Management Limited is pleased to announce that Enhanced Dividend Split Corp. has filed a preliminary prospectus in respect of an initial public offering of preferred shares and class A shares. The preferred shares have been provisionally rated Pfd-2 by Dominion Bond Rating Service Limited.

The Portfolio will be managed by ING Investment Management, Inc. ("ING IM"). Common equities will be selected by ING IM using fundamental and quantitative analysis to identify issuers that offer attractive valuations relative to long-term growth prospects. Preferred Shares will be selected based on extensive credit analysis and assessment of current market conditions, and the Preferred Share portfolio will be managed to have an average credit rating of Pfd-2 or better. ING IM will employ its proprietary Dividend Roll-Over Program ("DROP"), a trading strategy which seeks to provide enhanced dividend income by selecting higher yielding securities and by actively trading between ex-dividend dates in order to capture incremental dividend income. ING IM believes this strategy will increase the yield and total return of the Portfolio.

Class A shareholders will receive monthly cash distributions targeted to be 7.0% per annum and the opportunity for growth in net asset value. Preferred shareholders will receive quarterly dividends of 5.0% with the objective of returning the original issue price to shareholders on the Redemption Date, December 16, 2013. The offering will consist of 60% preferred shares and 40% class A shares.

The syndicate of agents for the offering is being co-led by CIBC World Markets Inc., RBC Capital Markets, and Scotia Capital Inc., and includes BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Raymond James Ltd., Wellington West Capital Inc., Blackmont Capital Inc., IPC Securities Corporation, Research Capital Corporation, and Acadian Securities Incorporated.

For further information, please contact your financial advisor 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.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    (416) 642-6008