Global Insurance Dividend Fund

September 30, 2014 11:13 ET

Global Insurance Dividend Fund Announces Initial Public Offering

TORONTO, ONTARIO--(Marketwired - Sept. 30, 2014) -

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 Insurance Dividend Fund (the "Fund") has filed a preliminary prospectus for the initial public offering of units of the Fund ("Units") at a price of $10.00 per Unit.

The Fund has been created to provide investors with exposure to an equal-weight portfolio of equity securities of 15 global insurance companies ("Global Insurers") which are constituents of the MSCI World Insurance Index. To be included in the portfolio, at the time of investment and at the time of each periodic reconstitution and rebalancing, each Global Insurer comprising the portfolio must: (i) have a market capitalization of at least $5 billion; (ii) pay a dividend/distribution at an annualized rate of at least 2.0%; and (iii) have an issuer rating of at least A- by S&P or an equivalent investment grade rating by a recognized rating agency. After applying the above mentioned criteria, the Manager will select 15 Global Insurers to comprise the portfolio, giving consideration to valuation, growth prospects, profitability and liquidity.

The initial indicative portfolio includes ACE Limited, Aflac Inc., Allianz SE, Aviva PLC, Axa SA, Great-West Lifeco Inc., Legal & General Group PLC, Manulife Financial Corporation, Marsh & McLennan Companies, Inc., Munich Reinsurance Company, Prudential PLC, Prudential Financial Inc., Sun Life Financial Inc., The Travelers Companies Inc., and Zurich Insurance Company Ltd.

The portfolio will be rebalanced and reconstituted at least 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.

The syndicate of agents for the Offering is being led by RBC Capital Markets and CIBC and includes TD Securities Inc., Scotiabank, BMO Capital Markets, National Bank Financial Inc., GMP Securities L.P., Raymond James Ltd., Canaccord Genuity Corp., Desjardins Securities Inc., Dundee Securities Ltd., Industrial Alliance Securities Inc., Mackie Research Capital Corporation and Manulife Securities Incorporated.

About Brompton Funds

Brompton Funds, a division of Brompton Group, is an experienced investment fund manager operating since 2002. Brompton is focused on meeting the needs of investors by offering low cost, innovative products with client friendly terms and supported by strong corporate governance.

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.

A preliminary prospectus containing important information relating to the Units has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. The preliminary prospectus 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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