European Dividend Growth Fund

European Dividend Growth Fund

June 26, 2017 16:15 ET

European Dividend Growth Fund Files Final Prospectus

TORONTO, ONTARIO--(Marketwired - June 26, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Brompton Funds Limited (the "Manager") is pleased to announce that European Dividend Growth Fund (the "Fund") has filed a final prospectus relating to the Fund's initial public offering of units with a maximum offering size of $150 million. The Fund is offering units at a price of $10.00 per unit. Closing is scheduled to occur on or about July 21, 2017.

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 that are not included on 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 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 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.

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 final prospectus of the Fund dated June 23, 2017.

This offering is only made by prospectus. The final 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 one of the dealers listed above. 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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