Global Healthcare Income & Growth Fund

Global Healthcare Income & Growth Fund

September 17, 2015 10:35 ET

Global Healthcare Income & Growth Fund Announces Exchange Ratios

TORONTO, ONTARIO--(Marketwired - Sept. 17, 2015) -

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

Global Healthcare Income & 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 August 20, 2015.

The Toronto Stock Exchange has conditionally approved the listing of the units, subject to the Fund fulfilling all customary requirements. Trading under the symbol HIG.UN is expected to commence on the closing date, September 24, 2015.

The initial distribution target for the Fund is $0.05 per unit per month representing an initial yield on the unit subscription price of 6.0% per annum.

The Fund has been created to provide investors with exposure to an equal-weight portfolio of equity securities of large capitalization global healthcare companies. To be considered for inclusion in the portfolio, at the time of investment and at the time of each periodic reconstitution and rebalancing, each healthcare company comprising the portfolio must (i) have a market capitalization of at least U.S.$5 billion, and (ii) have options in respect of their equity securities listed on a recognized options exchange. After applying the above mentioned criteria, the Manager will select global healthcare companies which represent attractive investment opportunities for the portfolio, giving consideration to the following metrics (among others, as applicable): (i) valuation; (ii) growth prospects; (iii) profitability; (iv) liquidity; (v) balance sheet strength; and (vi) dividend yield.

The Manager expects that between 20 and 30, but no less than 20, healthcare companies will comprise the portfolio. The initial indicative portfolio includes Abbott Laboratories, AbbVie Inc., Allergan plc, Amgen Inc., Anthem Inc., Bayer AG, Becton, Dickinson and Company, Cardinal Health Inc., Celgene Corporation, Gilead Sciences Inc., GlaxoSmithKline plc, Johnson & Johnson, McKesson Corporation, Merck & Co., Novartis AG, Pfizer Inc., Quest Diagnostics Inc., Roche Holding AG, Sanofi S.A., United Therapeutics Corporation, and UnitedHealth Group Inc.

The portfolio will be rebalanced and reconstituted at least semi-annually. 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 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, CIBC and Scotiabank and includes BMO Capital Markets, National Bank Financial Inc., TD Securities Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Haywood Securities Inc., Industrial Alliance Securities Inc. and Mackie Research Capital Corporation.

The following table indicates the adjusted volume weighted average trading price and exchange ratio for the Exchange Securities of each Exchange Eligible Issuer as calculated in the manner described in the Company's prospectus dated August 24, 2015. 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 Volume
Weighted Average
Trading Price
(C$ Equivalent)
Exchange
Ratio Per
Unit
Healthcare Companies
Abbott Laboratories (ABT) 002824100 US0028241000 $57.4023 5.7402
AbbVie Inc. (ABBV) 00287Y109 US00287Y1091 $77.8317 7.7832
Aetna Inc. (AET) 00817Y108 US00817Y1082 $154.0849 15.4085
Agilent Technologies Inc. (A) 00846U101 US00846U1016 $47.4519 4.7452
Alexion Pharmaceuticals Inc. (ALXN) 015351109 US0153511094 $221.4418 22.1442
Align Technology Inc. (ALGN) 016255101 US0162551016 $73.8209 7.3821
Alkermes Plc (ALKS) N/A IE00B56GVS15 $93.4993 9.3499
Allergan plc (AGN) N/A IE00BY9D5467 $396.3036 39.6304
Alnylam Pharmaceuticals Inc. (ALNY) 02043Q107 US02043Q1076 $140.6567 14.0657
AmerisourceBergen Corp. (ABC) 03073E105 US03073E1055 $138.7046 13.8705
Amgen Inc. (AMGN) 031162100 US0311621009 $199.0997 19.9100
Anthem Inc. (ANTM) 036752103 US0367521038 $195.4305 19.5431
AstraZeneca PLC (AZN) N/A GB0009895292 $88.2198 8.8220
Baxter International Inc. (BAX) 071813109 US0718131099 $47.5845 4.7585
Becton, Dickinson and Co. (BDX) 075887109 US0758871091 $180.3425 18.0343
Biogen Inc. (BIIB) 09062X103 US09062X1037 $418.7382 41.8738
Biomarin Pharmaceutical Inc. (BMRN) 09061G101 US09061G1013 $171.9158 17.1916
bluebird bio Inc. (BLUE) 09609G100 US09609G1004 $173.2973 17.3297
Boston Scientific Corp. (BSX) 101137107 US1011371077 $22.3824 2.2382
Bristol-Myers Squibb Co. (BMY) 110122108 US1101221083 $79.6986 7.9699
Brookdale Senior Living Inc. (BKD) 112463104 US1124631045 $35.5374 3.5537
Cardinal Health Inc. (CAH) 14149Y108 US14149Y1082 $111.7504 11.1750
Celgene Corp. (CELG) 151020104 US1510201049 $162.3337 16.2334
Centene Corp. (CNC) 15135B101 US15135B1017 $83.4272 8.3427
Cerner Corp. (CERN) 156782104 US1567821046 $82.5381 8.2538
Cigna Corp. (CI) 125509109 US1255091092 $185.1783 18.5178
Community Health Systems Inc. (CYH) 203668108 US2036681086 $67.2064 6.7206
C R Bard Inc. (BCR) 067383109 US0673831097 $254.6999 25.4700
DENTSPLY International Inc. (XRAY) 249030107 US2490301072 $70.3111 7.0311
DexCom Inc. (DXCM) 252131107 US2521311074 $127.0129 12.7013
Edwards Lifesciences Corp. (EW) 28176E108 US28176E1082 $184.2592 18.4259
Eli Lilly and Co. (LLY) 532457108 US5324571083 $109.2634 10.9263
Endo International PLC (ENDP) N/A IE00BJ3V9050 $102.2173 10.2217
Express Scripts Holding Co. (ESRX) 30219G108 US30219G1085 $111.2211 11.1221
Gilead Sciences Inc. (GILD) 375558103 US3755581036 $145.1811 14.5181
HCA Holdings Inc. (HCA) 40412C101 US40412C1018 $112.2059 11.2206
Hologic Inc. (HOLX) 436440101 US4364401012 $53.8563 5.3856
IDEXX Laboratories Inc. (IDXX) 45168D104 US45168D1046 $100.1851 10.0185
Illumina Inc. (ILMN) 452327109 US4523271090 $270.5457 27.0546
Incyte Corp. (INCY) 45337C102 US45337C1027 $170.6724 17.0672
Intercept Pharmaceuticals Inc. (ICPT) 45845P108 US45845P1084 $250.8447 25.0845
Intuitive Surgical Inc. (ISRG) 46120E602 US46120E6023 $675.1587 67.5159
Isis Pharmaceuticals Inc. (ISIS) 464330109 US4643301090 $71.8421 7.1842
Jazz Pharmaceuticals PLC (JAZZ) N/A IE00B4Q5ZN47 $211.4169 21.1417
Johnson & Johnson (JNJ) 478160104 US4781601046 $123.7764 12.3776
Laboratory Corporation of America Holdings (LH) 50540R409 US50540R4092 $156.9189 15.6919
Mallinckrodt Plc (MNK) N/A IE00BBGT3753 $108.8997 10.8900
McKesson Corp. (MCK) 58155Q103 US58155Q1031 $265.0829 26.5083
Medivation Inc. (MDVN) 58501N101 US58501N1019 $64.2824 6.4282
Medtronic PLC (MDT) N/A IE00BTN1Y115 $91.5095 9.1510
Merck & Co Inc. (MRK) 58933Y105 US58933Y1055 $70.1027 7.0103
Mylan NV (MYL) N/A NL0011031208 $64.7476 6.4748
Patterson Companies Inc. (PDCO) 703395103 US7033951036 $59.5767 5.9577
Pfizer Inc. (PFE) 717081103 US7170811035 $43.4950 4.3495
Qiagen NV (QGEN) N/A NL0000240000 $35.8233 3.5823
Quest Diagnostics Inc. (DGX) 74834L100 US74834L1008 $88.2239 8.8224
Regeneron Pharmaceuticals Inc. (REGN) 75886F107 US75886F1075 $707.0906 70.7091
Seattle Genetics Inc. (SGEN) 812578102 US8125781026 $62.2908 6.2291
St. Jude Medical Inc. (STJ) 790849103 US7908491035 $90.7622 9.0762
Stryker Corp. (SYK) 863667101 US8636671013 $131.3548 13.1355
Tenet Healthcare Corp. (THC) 88033G407 US88033G4073 $61.5473 6.1547
Thermo Fisher Scientific Inc. (TMO) 883556102 US8835561023 $163.9132 16.3913
United Therapeutics Corp. (UTHR) 91307C102 US91307C1027 $202.1438 20.2144
UnitedHealth Group Inc. (UNH) 91324P102 US91324P1021 $157.2375 15.7238
Universal Health Services Inc. (UHS) 913903100 US9139031002 $178.4878 17.8488
Valeant Pharmaceuticals International Inc. (VRX) 91911K102 CA91911K1021 $300.8930 30.0893
Vertex Pharmaceuticals Inc. (VRTX) 92532F100 US92532F1003 $177.0569 17.7057
Zimmer Biomet Holdings Inc. (ZBH) 98956P102 US98956P1021 $131.1779 13.1178
Zoetis Inc. (ZTS) 98978V103 US98978V1035 $58.6766 5.8677
Healthcare-Related Companies
Empire Company Ltd. (EMP.A) 291843407 CA2918434077 $80.8593 8.0859
George Weston Ltd. (WN) 961148509 CA9611485090 $107.8595 10.7860
Great-West Lifeco Inc. (GWO) 39138C106 CA39138C1068 $32.7172 3.2717
Loblaw Companies Ltd. (L) 539481101 CA5394811015 $68.0926 6.8093
Manulife Financial Corp. (MFC) 56501R106 CA56501R1064 $20.6133 2.0613
Metro Inc. (MRU) 59162N109 CA59162N1096 $34.6198 3.4620
Power Corporation of Canada (POW) 739239101 CA7392391016 $27.9090 2.7909
Power Financial Corp. (PWF) 73927C100 CA73927C1005 $31.6347 3.1635
Sun Life Financial Inc (SLF) 866796105 CA8667961053 $42.8633 4.2863
Additional Exchange Eligible Issuers
Agnico Eagle Mines Ltd. (AEM) 008474108 CA0084741085 $29.8912 2.9891
ARC Resources Ltd. (ARX) 00208D408 CA00208D4084 $17.3537 1.7354
Barrick Gold Corp. (ABX) 067901108 CA0679011084 $8.4933 0.8493
BlackBerry Ltd. (BB) 09228F103 CA09228F1036 $9.9059 0.9906
Cameco Corp. (CCO) 13321L108 CA13321L1085 $18.2757 1.8276
Canadian Natural Resources Ltd. (CNQ) 136385101 CA1363851017 $26.8842 2.6884
Canadian Pacific Railway Ltd. (CP) 13645T100 CA13645T1003 $192.7885 19.2789
Canadian Utilities Ltd. (CU) 136717832 CA1367178326 $35.1612 3.5161
Cenovus Energy Inc. (CVE) 15135U109 CA15135U1093 $17.8270 1.7827
Crescent Point Energy Corp. (CPG) 22576C101 CA22576C1014 $16.6052 1.6605
Encana Corporation (ECA) 292505104 CA2925051047 $9.6956 0.9696
First Quantum Minerals Ltd. (FM) 335934105 CA3359341052 $7.3158 0.7316
Franco-Nevada Corp. (FNV) 351858105 CA3518581051 $54.8424 5.4842
Goldcorp Inc. (G) 380956409 CA3809564097 $17.0958 1.7096
Husky Energy Inc. (HSE) 448055103 CA4480551031 $21.2022 2.1202
Imperial Oil Ltd. (IMO) 453038408 CA4530384086 $41.5010 4.1501
Inter Pipeline Ltd. (IPL) 45833V109 CA45833V1094 $24.5841 2.4584
Methanex Corp. (MX) 59151K108 CA59151K1084 $49.3773 4.9377
Open Text Corp. (OTC) 683715106 CA6837151068 $60.9647 6.0965
Pembina Pipeline Corp. (PPL) 706327103 CA7063271034 $33.6704 3.3670
Potash Corporation of Saskatchewan Inc. (POT) 73755L107 CA73755L1076 $33.0492 3.3049
Silver Wheaton Corp. (SLW) 828336107 CA8283361076 $15.4077 1.5408
Suncor Energy Inc. (SU) 867224107 CA8672241079 $33.9955 3.3996
Teck Resources Ltd. (TCK) 878742204 CA8787422044 $8.5785 0.8579
Tourmaline Oil Corp. (TOU) 89156V106 CA89156V1067 $31.9830 3.1983
TransCanada Corp. (TRP) 89353D107 CA89353D1078 $43.2867 4.3287

About Brompton Funds

Brompton Funds is a member of the Brompton Group, a provider of investment management and portfolio advisory services to TSX-listed investment funds since 2002 with total assets under management of approximately $2.2 billion as of June 30, 2015. Brompton's investment solutions include TSX listed closed-end funds, mutual funds, hedge funds and flow-through limited partnerships. Brompton currently manages over $1.0 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.

This offering is only made by prospectus. The prospectus 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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