Brompton Group

 

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Investment Strategy

In order to qualify for inclusion in the Portfolio, at the time of investment and at the time of each periodic reconstitution and/or rebalancing, each European Dividend Growth Company comprising the Portfolio must (i) be a constituent of the STOXX Europe 600 Index; (ii) have a market capitalization of at least EUR15 billion; and (iii) have a history of dividend growth or, in the Manager’s view, have high potential for future dividend growth. The Manager will select equity securities of European Dividend Growth Companies to construct the Portfolio, giving consideration as applicable to the following, among other factors, of each issuer’s:
                               Dividend growth potential;
                               Valuation;
                               Profitability;
                               Dividend yield;
                               Balance sheet strength; and/or
                               Liquidity.
In addition, up to 25% of the Portfolio may be invested in companies domiciled, incorporated, and/or listed in Europe that are not included in the STOXX Europe 600 Index but that would otherwise be European Dividend Growth Companies.

The Manager expects that between 20 and 25, but no fewer than 20, European Dividend Growth Companies will comprise the Portfolio at any given time.

DRIP
Investors may elect to automatically reinvest their distributions in additional units of the Fund and realize the benefits of compound growth. Currently, no commissions or brokerage fees are allocated to plan participants. DRIP Plan 

Annual Redemption
Units may be redeemed annually, beginning in 2019, on the second last Business Day of July (“Annual Redemption Date”), subject to certain conditions. In order to effect such redemption, the Units must be surrendered on or before the last Business Day of June prior to the applicable Annual Redemption Date. Unitholders whose Units are redeemed will receive a redemption price in an amount equal to 100% of the Net Asset Value per Unit on the Annual Redemption Date (less any costs and expenses associated with the redemption).

Covered Option Writing
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 earn option premiums and lower the overall volatility of returns associated with owning a portfolio of equity securities. Call options will be written only in respect of the Portfolio Securities.

Symbol(s)

TSX : EDGF.UN

CUSIP

29876T106

Inception Date

Jul 21, 2017

Manager/Portfolio Manager
Brompton Funds Limited

Management Fee
The management fee is 1.25% of net asset value per annum for the period from inception to the second Annual Redemption Date in July 2020, and 0.95% there after. 

Issuer Bid/Market Repurchases
The Fund may purchase up to 10% of the public float per annum at prices up to net asset value per unit.

Fair Investor Terms
Strong corporate governance
Commitment to low fees and overall operating cost containment
No entrenched management provisions and prohibitive against dilutive equity offerings.

Eligibility
The Fund is RRSP, DPSP, RRIF, RESP, and TFSA eligible.

Termination/Liquidity
The Fund has no termination date as investors may redeem their units at net asset value less expenses annually.   For daily liquidity investors can sell their units on the TSX.


 
PLEASE READ AND ACCEPT THESE IMPORTANT DISCLOSURES

You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or alternative Canadian trading platforms (an “exchange”). If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them.

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. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

This communication is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. The opinions contained in this report are solely those of Goldman Sachs Asset Management L.P. (“GSAM”) and are subject to change without notice. GSAM makes every effort to ensure that the information has been derived from sources believed to reliable and accurate. However, GSAM assumes no responsibility for any losses or damages, whether direct or indirect which arise from the use of this information. GSAM is under no obligation to update the information contained herein. The communication should not be regarded as a substitute for the exercise of your own judgment. Please read the fund’s offering documents before investing.

Certain statements contained in this document constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this document 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 December 15, 2015 and we assume no obligation to update or revise them to reflect new events or circumstances.

Fund holdings and allocations shown are unaudited, and may not be representative of current or future investments, should not be construed and research or investment advice, and are subject to risk.

Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or its securities. It should not be assumed that investment decisions made in the future will be profitable or will equal the performance of the securities discussed in this document.

Portfolio holdings may change by the time you view this. Portfolio holdings may not be representative of future investments. The securities discussed may not represent all of the portfolio's holdings and may not be deemed representative of the strategy’s future portfolio holdings. Future portfolio holdings may not be profitable.

The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

No part of this material may, without Brompton and GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an authorized recipient. This material is intended for Investment Advisor use only.

I confirm that I have read, understood, and accept the above disclosures.

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