Brompton VIP Income Fund
TSX : VIP.UN

Brompton VIP Income Fund
Brompton Stable Income Fund
TSX : BSR.UN

Brompton Stable Income Fund
Brompton Equal Weight Income Fund
TSX : EWI.UN

Brompton Equal Weight Income Fund
Business Trust Equal Weight Income Fund
TSX : BWI.UN

Business Trust Equal Weight Income Fund
BG Top 100 Equal Weighted Income Fund
TSX : BTH.UN

BG Top 100 Equal Weighted Income Fund
Brompton Tracker Fund
TSX : BTF.UN

Brompton Tracker Fund
BG Income + Growth Split Trust
TSX : BDS.UN
TSX : BDS.PR.A

BG Income + Growth Split Trust
BG Advantaged S&P(R)/TSX(R) Income Trust Index Fund
TSX : BAI.UN

BG Advantaged Equal Weighted Income Fund
TSX : BAE.UN

BG Advantaged Equal Weighted Income Fund
Brompton Advantaged Tracker Fund
TSX : ATF.UN

Brompton Advantaged Tracker Fund
Brompton Top 50 Compound Growth Fund
TSX : CGF.UN

Brompton Top 50 Compound Growth Fund
BG Advantaged Corporate Bond Fund
TSX : BAC.UN

BG Advantaged Corporate Bond Fund
Brompton Equal Weight Oil & Gas Income Fund
TSX : OGF.UN

Brompton Equal Weight Oil & Gas Income Fund
Brompton Advantaged Oil & Gas Income Fund
TSX : AOG.UN

Brompton Advantaged Oil & Gas Income Fund

June 09, 2008 18:05 ET

Securityholders Approve Reorganization of Brompton's Funds

TORONTO, ONTARIO--(Marketwire - June 9, 2008) - A special meeting of securityholders for the funds listed below (collectively, the "Funds") was held today at which securityholders approved the extraordinary resolutions to reorganize the Funds, including the merger of certain funds. The reorganization of the Funds is designed to proactively address the uncertainty concerning the future of income trust investments resulting from the Federal government's October 31, 2006 decision to tax income trusts.



Brompton VIP Income Fund (TSX:VIP.UN)
Brompton Stable Income Fund (TSX:BSR.UN)
Brompton Equal Weight Income Fund (TSX:EWI.UN) - To be merged into
Business Trust Equal Weight Income Brompton VIP Income Fund
Fund (TSX:BWI.UN) ("VIP.UN")
BG Top 100 Equal Weighted Income Fund (TSX:BTH.UN)
Brompton Tracker Fund (TSX:BTF.UN)
BG Income + Growth Split Trust (TSX:BDS.UN)
(TSX:BDS.PR.A)


BG Advantaged S&P®/TSX® Income Trust Index
Fund (TSX:BAI.UN)
BG Advantaged Equal Weighted Income - To be merged to form
Fund (TSX:BAE.UN) Brompton Advantaged VIP
Brompton Advantaged Tracker Fund (TSX:ATF.UN) Income Fund ("AV.UN")
Brompton Top 50 Compound Growth Fund (TSX:CGF.UN)
BG Advantaged Corporate Bond Fund (TSX:BAC.UN)


Brompton Equal Weight Oil & Gas Income Fund (TSX:OGF.UN)

Brompton Advantaged Equal Weight Oil & Gas Income Fund (TSX:AOG.UN)

The Reorganization will involve three principal changes: (i) amending the investment strategies and restrictions of the Funds to, among other things, broaden the asset classes in which the Funds may invest; (ii) adopting, where not currently in place, an active investment management strategy for each of the Funds to manage the expanded investment universe and appointing MFC Global Investment Management®, the asset management division of Manulife Financial Corporation, as the portfolio manager; and (iii) merging certain of the Funds, which generally have similar investment portfolios and tax characteristics, into Brompton VIP Income Fund and Brompton Advantaged VIP Income Fund, as described above. The oil and gas funds OGF.UN and AOG.UN will remain as separate oil and gas focused funds and will not undergo any merger. However, the fund names will be changed to Brompton Oil & Gas Income Fund and Brompton Advantaged Oil & Gas Income Fund to reflect the change in fund mandates.

The merger of funds into Brompton VIP Income Fund is expected to occur on July 4, 2008. The new units of VIP.UN issued pursuant to the merger are expected to begin trading on the TSX on or about Monday, July 7, 2008 with the fund continuing to trade under the ticker symbol VIP.UN. The merger of funds to form Brompton Advantaged VIP Income Fund is expected to occur on July 11, 2008. The units issued pursuant to this merger are expected to begin trading on the TSX on or about Monday, July 14, 2008 under the ticker symbol AV.UN. Both of these mergers will be completed on a tax-deferred "rollover" basis for all unitholders. Preferred securityholders of BDS will be considered to have disposed of their securities for proceeds equal to $10.00 per preferred security upon the exchange.

The mergers are expected to provide additional liquidity for unitholders and lower general and administration costs on a per unit basis. The net asset value as at June 5, 2008 of the seven funds that will be included in VIP.UN is approximately $830 million and the net asset value of the five funds merging into AV.UN is approximately $345 million.

Unitholders of the funds merging into VIP.UN and AV.UN will receive the previously announced distribution rates for June 2008. For unitholders of record in July 2008, the new distribution rates, as described in the Information Circular, for these two funds will be set at:

VIP.UN - $1.20 per annum ($0.10 per month);

AV.UN - $1.152 per annum ($0.096 per month).

As the mandate change for the two oil and gas funds will be effected in June 2008 and due to higher income earned on the investment portfolio, distribution rates will be increased for unitholders of record on June 30, 2008 to the rate described in the Information Circular of:

OGF.UN - $0.84 per annum ($0.07 per month); and

AOG.UN - $0.072 per annum ($0.06 per month).

For a copy of the Information Circular that was previously mailed to securityholders concerning the reorganization, voting results or additional information regarding the Funds, please visit our website at www.bromptongroup.com.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the funds 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.

Forward-Looking Statements

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 press release and to other matters identified in public filings relating to the Funds, to the future outlook of the Funds and anticipated events or results and may include statements regarding the future financial performance of the Funds. 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.

Forward-looking statements in this press release include among other things, the proposed timing of the reorganization, the expected completion thereof; the expected benefits of the reorganization and the Funds that are expected to be merged. These statements are based on certain factors and assumptions. In arriving at our conclusions regarding the proposed timing of the reorganization, we have assumed that any regulatory approvals and third party consents and actions are given or carried out (as the case may be) in a timely manner. Our expectations regarding the benefits of the reorganization are based on there occurring a decrease in the quantities of investable income funds and that income funds will eventually be taxed commencing in and around January 2011. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. There are no assurances that the actual outcomes will match the forward-looking statements as a result of a number of risks and uncertainties that could cause actual results to differ materially from what we currently expect. These factors include changes in market and competition, governmental or regulatory developments and general economic conditions. Other than as required under securities laws, we do not undertake to update this information at any particular time.

Contact Information

  • Brompton Funds Management Limited
    David E. Roode
    Senior Vice President
    (416) 642-6008
    Website: www.bromptongroup.com.