Global Healthcare Income & Growth Fund

Global Healthcare Income & Growth Fund

July 30, 2015 14:40 ET

Global Healthcare Income & Growth Fund Announces Initial Public Offering

TORONTO, ONTARIO--(Marketwired - July 30, 2015) -

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 Global Healthcare Income & Growth Fund (the "Fund") has filed a preliminary prospectus for the initial public offering of units of the Fund at a price of $10.00 per unit.

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 seek to earn attractive income from call 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.

Prospective purchasers may purchase Units: (i) by a cash payment; or (ii) by an exchange (the "Exchange Option") of freely-tradable listed securities of any eligible issuers listed in the preliminary prospectus. Prospective purchasers who utilize the Exchange Option are required to deposit their exchange eligible issuers no later than 5:00 p.m. (Toronto time) on August 20, 2015 through CDS. Please contact your investment advisor or refer to the preliminary prospectus for detailed information on how to participate in the offering by way of either cash purchase or exchange of securities.

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.

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. A preliminary prospectus containing important detailed information relating to the units has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada and is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from one of the dealers listed above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

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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