Brompton Top 50 Compound Growth Fund

Brompton Top 50 Compound Growth Fund

March 30, 2006 17:10 ET

Brompton Top 50 Compound Growth Fund Announces Initial Public Offering

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) - Brompton Funds Management Limited ("Manager") is pleased to announce that Brompton Top 50 Compound Growth Fund ("Fund") has filed a preliminary prospectus in respect of an initial public offering of trust units.

The Fund is designed to provide unitholders with the benefits of compound investment returns on a tax deferred basis and the potential for additional capital appreciation of the portfolio, with low management fees. The compound investment returns will be generated by reinvesting the distributions from an equally weighted diversified portfolio of the top 50 income trusts, as measured by current yield, which qualify for inclusion in the S&P/TSX Composite Index. The Manager believes that the portfolio will be well diversified and will provide investors with an opportunity to earn an attractive compound investment return.

In order to generate a compound investment return, the distributions from the income trusts included in the portfolio, less fees and expenses, but without any deduction for tax, will generally be reinvested in additional units of income trusts included in the portfolio. The Manager will, wherever practicable, utilize distribution reinvestment plans offered by some income trusts to reduce the average cost of acquiring such additional units. Distribution reinvestment plans offer commission-free purchases of units and often such purchases are available at a discount to the market price.

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., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., Blackmont Capital Inc., Dundee Securities Corporation, Raymond James Ltd., Research Capital Corporation, IPC Securities Corporation, Wellington West Capital Inc., Acadian Securities Incorporated and Newport Securities LP.

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 prospectus before investing. 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