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.
Contact Information:
416-642-6000
Toll-Free: 1-866-642-6001
info@bromptongroup.com
www.bromptongroup.com