TORONTO, ONTARIO--(Marketwired - Dec. 11, 2013) - Brompton Lifeco Split Corp. ("LCS" or the "Fund") (TSX:LCS)(TSX:LCS.PR.A) is pleased to announce that its board of directors (the "Board") has approved granting shareholders an additional option to allow them to continue their investment in the Fund beyond its currently scheduled termination date of April 30, 2014. The proposed extension will not result in any changes to shareholder redemption rights and is subject to shareholder approval.
The Class A Shares and Preferred Shares are currently trading at a combined premium to net asset value per Unit (being one Class A Share and one Preferred Share) of approximately 3%. By approving the extension of the Fund, shareholders will have the opportunity to benefit from potential future trading premiums. In the event that the proposed extension is not approved by shareholders, the Fund will terminate and Class A and Preferred shareholders will receive net asset value per Class A and Preferred Share respectively.
LCS invests in a portfolio, on an approximately equal weight basis, of common shares of Canada's 4 largest publicly-listed life insurance companies: Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc. The 1 year performance to November 30, 2013 of the Class A Shares and Preferred Shares of the Fund was 306.8% and 5.4%, respectively, as Canadian life insurance companies have had strong performance over the period.
Under the proposal:
- The term of LCS will be extended for an additional term of approximately 5 years to April 29, 2019. In addition, the termination date may be extended further for successive terms of up to 5 years thereafter, as determined by the Board;
- Current retraction rights of the Class A shareholders and Preferred shareholders will not change and shareholders will be provided with an additional special retraction right providing an option to retract either Preferred Shares or Class A Shares at the end of the term (and each successive term thereafter) and receive a retraction price that is calculated in the same way that such price would be calculated if the Company were to terminate on April 30, 2014 (or any successive termination date); and
- The distribution rates on the Preferred Shares and distribution target on the Class A Shares for the new term will be announced at least 60 days prior to the extension of the term.
LCS will hold a special meeting of holders of Preferred shares and Class A shares on February 18, 2014 to consider and vote upon the proposal. Shareholders of record at the close of business on January 17, 2014 will be provided with the notice of meeting and management information circular in respect of the meeting and will be entitled to vote at the meeting. The proposal is also subject to any required regulatory approvals.
Further details regarding the proposal will be contained in the management information circular which will be mailed to shareholders once available. The circular will also be available on www.sedar.com and posted at www.bromptongroup.com.
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.
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 for a variety of reasons, including those set forth below.