European Dividend Growth Fund

European Dividend Growth Fund

July 06, 2017 20:09 ET

European Dividend Growth Fund Announces Exchange Ratios

TORONTO, ONTARIO--(Marketwired - July 6, 2017) -

Not for distribution to U.S. newswire services or for dissemination in the United States.

European Dividend Growth Fund (the "Fund") has determined the exchange ratios for the exchange option (the "Exchange Option") with respect to its initial public offering. Under the Exchange Option, prospective purchasers could purchase units of the Fund by an exchange of freely tradable equity securities ("Exchange Securities") of the issuers listed in the table below (the "Exchange Eligible Issuers"). The Exchange Option deadline was 5:00 pm on June 22, 2017.

The Toronto Stock Exchange has conditionally approved the listing of the units of the Fund, subject to the Fund fulfilling all customary requirements. Trading under the symbol EDGF.UN is expected to commence on or about the closing date, July 21, 2017.

The initial distribution target for the Fund is $0.04167 per unit per month representing an initial yield on the unit subscription price of 5.0% per annum.

The Fund has been created to provide investors with exposure to an equal-weight portfolio of equity securities of large- capitalization European Dividend Growth Companies. In order to qualify for inclusion in the portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing, each European Dividend Growth Company comprising the portfolio must (i) be a constituent of the STOXX Europe 600 Index; (ii) have a market capitalization of at least EUR15 billion; and (iii) have a history of dividend growth or, in the Manager's view, have high potential for future dividend growth (a "European Dividend Growth Company").

The Manager expects that between 20 and 25, but no less than 20, European Dividend Growth Companies will comprise the portfolio at any given time. In addition, up to 25% of the portfolio may be invested in companies domiciled, incorporated, and/or listed in Europe that are not included in the STOXX Europe 600 Index but that would otherwise be European Dividend Growth Companies. The indicative portfolio includes Adidas AG, Airbus SE, Allianz SE, Astrazeneca plc, AXA SA, BMW AG, BT Group plc, Carnival plc, Danone SA, Deutsche Post AG, Enel SpA, Henkel AG & Company, KGaA, HSBC Holdings plc, LafargeHolcim Ltd., LVMH Moët Hennessy - Louis Vuitton, Novartis AG, SAP SE, Shire plc, Siemens AG, UBS Group AG and Unilever plc.

The portfolio will be rebalanced and reconstituted at least annually or more frequently in the discretion of the Manager. The Manager will write covered call options from time to time on up to, but not more than, 33% of the portfolio, in order to seek to earn option premiums and lower the overall volatility of returns associated with owning a portfolio of equity securities. The Manager will seek to hedge substantially all of the portfolio's foreign currency exposure back to the Canadian dollar.

The syndicate of agents is being led by RBC Capital Markets and includes CIBC, Scotiabank, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Echelon Wealth Partners, Haywood Securities Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

The following table indicates the adjusted volume weighted average trading price ("Adjusted VWAP") and exchange ratio for the Exchange Securities of each Exchange Eligible Issuer as calculated in the manner described in the Company's prospectus dated June 23, 2017. The adjusted volume weighted average trading price and exchange ratios are rounded to four decimal places. Fractional units will not be issued.

Company Name (Exchange Ticker Symbol) CUSIP ISIN Adjusted VWAP
(C$ Equiv.)
Exchange Ratio Per Unit
European Equities
ABB Ltd (ABB) 000375204 US0003752047 $ 32.1274 3.2127
Anheuser-Busch InBev SA/NV (BUD) 03524A108 US03524A1088 $ 142.9166 14.2917
ASML Holding NV (ASML) N07059210 USN070592100 $ 169.0881 16.9088
AstraZeneca plc (AZN) n/a GB0009895292 $ 86.2855 8.6286
AstraZeneca plc (AZN) 046353108 US0463531089 $ 43.9020 4.3902
Banco Bilbao Vizcaya Argentaria SA (BBVA) 05946K101 US05946K1016 $ 11.0074 1.1007
Banco Santander SA (SAN) 05964H105 US05964H1059 $ 8.7618 0.8762
Barclays plc (BCS) 06738E204 US06738E2046 $ 13.8397 1.3840
Bayerische Motoren Werke AG (BMW) n/a DE0005190003 $ 120.9644 12.0964
BP plc (BP) 055622104 US0556221044 $ 44.8953 4.4895
British American Tobacco plc (BTI) 110448107 US1104481072 $ 88.2491 8.8249
BT Group plc (BT) 05577E101 US05577E1010 $ 24.7555 2.4756
Carnival plc (CCL) 143658300 PA1436583006 $ 85.1022 8.5102
Carnival plc (CUK) 14365C103 US14365C1036 $ 85.5668 8.5567
Daimler AG (DAI) n/a DE0007100000 $ 94.1058 9.4106
Diageo plc (DEO) 25243Q205 US25243Q2057 $ 154.5968 15.4597
Eni SpA (E) 26874R108 US26874R1086 $ 38.9143 3.8914
GlaxoSmithKline plc (GSK) 37733W105 US37733W1053 $ 55.3130 5.5313
HSBC Holdings plc (HSBA) n/a GB0005405286 $ 12.1216 1.2122
HSBC Holdings plc (HSBC) 404280406 US4042804066 $ 60.4878 6.0488
ING Groep NV (ING) 456837103 US4568371037 $ 22.6730 2.2673
Lloyds Banking Group plc (LYG) 539439109 US5394391099 $ 4.5500 0.4550
National Grid plc (NGG) 636274409 US6362744095 $ 80.3784 8.0378
Novartis AG (NVS) 66987V109 US66987V1098 $ 107.5207 10.7521
Novo Nordisk A/S (NVO) 670100205 US6701002056 $ 54.9623 5.4962
Prudential plc (PUK) 74435K204 US74435K2042 $ 59.7692 5.9769
Rio Tinto plc (RIO) 767204100 US7672041008 $ 55.6975 5.5698
Royal Dutch Shell plc (RDS.A) 780259206 US7802592060 $ 68.9266 6.8927
Royal Dutch Shell plc (RDS.B) 780259107 US7802591070 $ 70.6263 7.0626
Sanofi (SNY) 80105N105 US80105N1054 $ 61.9398 6.1940
SAP SE (SAP) 803054204 US8030542042 $ 134.1793 13.4179
Shire plc (SHPG) 82481R106 US82481R1068 $ 215.4489 21.5449
Syngenta AG (SYT) 87160A100 US87160A1007 $ 120.1298 12.0130
Telefonica SA (TEF) 879382208 US8793822086 $ 13.4137 1.3414
TOTAL SA (TOT) 89151E109 US89151E1091 $ 64.1372 6.4137
UBS Group AG (UBSG) n/a CH0244767585 $ 22.3662 2.2366
Unilever plc (UL) 904767704 US9047677045 $ 69.6713 6.9671
Vodafone Group plc (VOD) 92857W308 US92857W3088 $ 37.1216 3.7122
ETFs
iShares MSCI EAFE Index ETF CAD-Hedged (XIN) 46428L100 CA46428L1004 $ 25.0423 2.5042
iShares Core MSCI EAFE IMI Index ETF (XEF) 46434T105 CA46434T1057 $ 29.0483 2.9048
iShares MSCI Europe IMI Index ETF (XEU) 46434W108 CA46434W1086 $ 23.2473 2.3247
Vanguard FTSE Developed Europe All Cap Index ETF (VE) 92206M100 CA92206M1005 $ 28.1561 2.8156
Additional Exchange Eligible Issuers
ARC Resources Ltd (ARX) 00208D408 CA00208D4084 $ 16.9498 1.6950
Barrick Gold Corp (ABX) 67901108 CA0679011084 $ 20.5239 2.0524
BlackBerry Ltd (BB) 09228F103 CA09228F1036 $ 12.8129 1.2813
Bombardier Inc (BBD.B) 97751200 CA0977512007 $ 2.3693 0.2369
Cameco Corp (CCO) 13321L108 CA13321L1085 $ 11.9603 1.1960
Cenovus Energy Inc (CVE) 15135U109 CA15135U1093 $ 9.3994 0.9399
Crescent Point Energy Corp (CPG) 22576C101 CA22576C1014 $ 9.7065 0.9707
Eldorado Gold Corp (ELD) 284902103 CA2849021035 $ 3.3581 0.3358
Enbridge Inc (ENB) 29250N105 CA29250N1050 $ 51.7364 5.1736
Goldcorp Inc (G) 380956409 CA3809564097 $ 16.6739 1.6674
Husky Energy Inc (HSE) 448055103 CA4480551031 $ 14.5896 1.4590
Kinross Gold Corp (K) 496902404 CA4969024047 $ 5.1734 0.5173
Potash Corp of Saskatchewan Inc (POT) 73755L107 CA73755L1076 $ 21.1900 2.1190
Saputo Inc (SAP) 802912105 CA8029121057 $ 40.9021 4.0902
SNC-Lavalin Group Inc (SNC) 78460T105 CA78460T1057 $ 56.6387 5.6639
Valeant Pharmaceuticals International Inc (VRX) 91911K102 CA91911K1021 $ 22.3797 2.2380
Yamana Gold Inc (YRI) 98462Y100 CA98462Y1007 $ 3.0943 0.3094

About Brompton Funds Limited

Brompton Funds is a member of the Brompton Group ("Brompton"), a provider of investment management and portfolio advisory services to TSX traded investment funds since 2002 with total assets under management of approximately $2.0 billion as of April 30, 2017. Brompton's investment solutions include TSX traded funds, mutual funds, and flow-through limited partnerships. Brompton currently manages over $1.25 billion of assets for funds that employ covered call strategies.

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), e-mail info@bromptongroup.com or visit our website at www.bromptongroup.com.

Capitalized terms used but not defined herein have the meaning given to them in the prospectus of the Fund dated June 23, 2017.

This offering is only made by prospectus. The prospectus of the Fund dated June 23, 2017 contains important detailed information about the securities being offered. Copies of the prospectus may be obtained from any of the above-mentioned agents. Investors should read the prospectus before making an investment decision.

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 news 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.

There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the Fund. You can find more detailed information about the Fund in the public filings available 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 news 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. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

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