Manulife Brompton Advantaged Bond Fund

Manulife Brompton Advantaged Bond Fund

March 31, 2009 10:08 ET

Manulife Brompton Advantaged Bond Fund Files Final Prospectus

TORONTO, ONTARIO--(Marketwire - March 31, 2009) - Brompton Funds Management Limited (the "Manager") is pleased to announce that Manulife Brompton Advantaged Bond Fund (the "Fund") has filed a final prospectus in respect of an initial public offering of units for a maximum offering size of $100 million. The Fund is offering two classes of units (the "Units"), Class A and Class F Units, each at a price of $10.00 per Unit. Class F Units are designed for fee-based accounts and will not be listed on a stock exchange.

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 will seek 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"), a 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. MFC GIM is also the portfolio manager of the Manulife Corporate Bond Fund, a Morningstar 4-star-rated fund.

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 Toronto Stock Exchange has conditionally approved the listing of the Class A Units subject to the Fund fulfilling all of the customary requirements. Trading of Class A Units under the symbol MBB.UN is expected to commence on April 23, 2009, the date of closing.

The syndicate of agents for the offering is being co-led by RBC Capital Markets and CIBC World Markets Inc. 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 prospectus before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice-President
    416-642-6008