Manulife Brompton Advantaged Bond Fund
TSX : MBB.UN

Manulife Brompton Advantaged Bond Fund

April 23, 2009 09:27 ET

Manulife Brompton Advantaged Bond Fund Closes Initial Public Offering at $40 Million

TORONTO, ONTARIO--(Marketwire - April 23, 2009) - Brompton Funds Management Limited is pleased to announce that Manulife Brompton Advantaged Bond Fund (TSX:MBB.UN) has completed its initial public offering of 3,800,000 class A units and 206,770 class F units at $10.00 per unit for each class, for gross proceeds of $40,067,700. The class A units commence trading April 23, 2009, on the Toronto Stock Exchange under the symbol MBB.UN. Class F units are designed for fee-based accounts and are not be listed on a stock exchange and are exchangeable into class A units.

The Fund's investment objectives are to provide unitholders with attractive monthly tax-advantaged cash distributions together with the opportunity for capital appreciation. Distributions are initially targeted to be $0.70 per annum per class A unit or class F unit consisting primarily of return of capital, representing a yield on the issue price of 7.0% per annum. The Fund seeks to achieve its investment objectives through exposure to an actively managed bond portfolio consisting primarily of North American corporate bonds.

The Manager has selected MFC Global Investment Management (Canada) ("MFC GIM"), part of the asset management division of Manulife Financial Corporation, to manage the portfolio. MFC GIM and related entities manage approximately $250 billion in assets, including over $145 billion in fixed income securities. MFC GIM is a top-ranked portfolio manager of income oriented investments and has extensive experience in investment grade and high-yield corporate bonds.

The portfolio manager believes that an attractive opportunity currently exists to invest in corporate bonds for the following reasons:

- corporate bonds currently provide high yields relative to government bonds and equities;

- current spreads of corporate bonds over government bonds are near their highest level since the 1930's, providing the opportunity for capital gains as spreads return to normal levels; and

- bonds, which generally rank senior to equities and are typically viewed as more conservative investments, historically recover in advance of equity markets after a market correction.

In addition, the portfolio manager believes that government bonds are currently overvalued relative to corporate bonds and an opportunity exists to enhance portfolio returns by selling short government bonds and investing the proceeds in additional corporate bonds.

The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC, and includes Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Manulife Securities Incorporated, Canaccord Capital Corporation, Desjardins Securities Inc., Raymond James Ltd., Blackmont Capital Inc., Dundee Securities Corporation, Research Capital Corporation, Wellington West Capital Markets Inc., M Partners Inc. and Richardson Partners Financial Limited.

For further information, please contact your financial advisor, call our investor relations line at 416-642-9051, (toll-free at 1-866-642-6001) or visit our website at www.bromptongroup.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

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