Brompton Tracker Fund

Brompton Tracker Fund

July 18, 2005 12:30 ET

Brompton Tracker Fund Closes Initial Public Offering at $400,000,000

TORONTO, ONTARIO--(CCNMatthews - July 18, 2005) - Brompton Tracker Fund (TSX:BTF.UN) is pleased to announce that it has completed its initial public offering of 40,000,000 trust units at a price of $10.00 per unit for gross proceeds of $400 million. The Fund's units begin trading today on the Toronto Stock Exchange under the symbol BTF.UN.

The Fund is designed to provide unitholders with the benefits of high monthly cash distributions and low management fees, together with the opportunity for capital appreciation by investing, on an equally weighted basis, in those income funds which will be included from time to time by Standard & Poor's ("S&P") in the S&P/TSX Composite Index ("Composite Index") and which pay a regular distribution.

On May 18, 2005, S&P announced its implementation plan for including income funds in the Composite Index, Canada's premier equity index. The Fund will invest on an equally weighted basis initially in a portfolio of 66 income funds that the Manager anticipates, based on information available at closing, will be selected by S&P for inclusion in the Composite Index. The Manager believes that the resulting portfolio will be well diversified, consisting of the larger capitalization income funds. As a result of the equal weight approach, each income fund would constitute approximately 1.5% of the portfolio.

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., First Associates Investments Inc., Raymond James Ltd., Dundee Securities Corporation, IPC Securities Corporation, Research Capital Corporation, Wellington West Capital Inc. and Acadian Securities Incorporated.

Brompton BTF Management Limited, a member of the Brompton Group, is the manager of the Fund. Brompton's primary business is asset management with over $2.8 billion under management.

Contact Information