Tech Leaders Income Fund
TSX : TLF.UN

Tech Leaders Income Fund

June 17, 2011 08:54 ET

Tech Leaders Income Fund Closes Over-Allotment

TORONTO, ONTARIO--(Marketwire - June 17, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Brompton Funds Management Limited (the "Manager") is pleased to announce that Tech Leaders Income Fund (the "Fund") (TSX:TLF.UN) has completed the issuance of 150,000 units ("Units") for gross proceeds of $1.5 million. This issuance was pursuant to the exercise of the over-allotment option granted to the agents in connection with the Fund's recently completed initial public offering. With the exercise of the over-allotment option, total gross proceeds raised by the Fund are $81.5 million. The Units trade on the Toronto Stock Exchange under the symbol TLF.UN.

The Fund's investment objectives are to provide unitholders with monthly distributions and the opportunity for capital appreciation through investment in an equal-weight portfolio consisting of equity securities of the 15 highest ranked technology companies which have a market capitalization of at least U.S.$15 billion at the time of their inclusion in the portfolio, are included in either the S&P 500 Index or S&P/TSX 60 Index, and which generate the highest combined ratings from a ranking system which gives equal weight to (i) Growth (as represented by high Earnings-per-Share growth), (ii) Value (as represented by low Price-to-Earnings ratio), and (iii) Quality (as represented by high Return-on-Equity). The portfolio will be rebalanced to these criteria at least annually, and currently includes Apple Inc., Cisco Systems Inc., Corning Inc., Dell Inc., eBay Inc., Google Inc., Hewlett-Packard Company, International Business Machines Corporation, Intel Corporation, MasterCard Inc., Microsoft Corporation, Oracle Corporation, Qualcomm Incorporated, Research in Motion Limited and Texas Instruments Inc.

Distributions are initially targeted at 6.5% per annum based on the issue price of $10.00 per Unit. Substantially all of the portfolio will be hedged to Canadian dollars.

The Manager has selected Highstreet Asset Management Inc. to be the Option Advisor. The Option Advisor intends to sell call options each month on up to, and not more than, 25% of the equity securities of each technology company held in the portfolio. Highstreet Asset Management Inc. is an investment management firm with total assets under management of approximately $6.4 billion as of December 31, 2010.

The syndicate of agents for the offering was co-led by RBC Capital Markets and CIBC and includes TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., HSBC Securities (Canada) Inc., Mackie Research Capital Corporation, Raymond James Ltd., Canaccord Genuity Corp., Dundee Securities Ltd., Macquarie Private Wealth Inc., Wellington West Capital Markets Inc., Desjardins Securities Inc. and Manulife Securities Incorporated.

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.bromptonfunds.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.

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 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.

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 press 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.

Contact Information

  • Brompton Funds Management Limited
    Chris Cullen
    Senior Vice-President
    416-642-9064