Brompton Group

 

Select other strategies


Objectives
To provide holders of Preferred shares with fixed cumulative preferential quarterly cash distributions and to return the original issue price of $10.00 to Preferred Shareholders on June 30, 2021, subject to the extension of the term for periods of up to five years as determined by the board of directors.

To provide holders of Class A shares with regular monthly cash distributions and the opportunity for growth in net asset value per Class A share.

Credit Rating
Preferred shares rated Pfd-3 (high) by DBRS

Portfolio
Diversified portfolio of equity securities of large capitalization global dividend growth companies selected by the Manager. The Manager expects that at least 20 global dividend growth companies will comprise the portfolio. Equity securities selected by the manager will generally be equal-weighted at the time of investment and after rebalancing of the portfolio.The Company may selectively write covered call options from time to time in respect of all or a portion of the securities held in the portfolio to generate additional income.

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

Rebalancing Criteria

Retraction Privileges
Non-Concurrent Retraction:

On the Maturity Date and upon any subsequent maturity date as determined by the Board of Directors, a holder of Preferred Shares or Class A Shares may retract such Shares. The Company will provide at least 60 days’ notice to Shareholders of such right. The redemption price payable by the Company for a Preferred Share pursuant to the non-concurrent retraction right will be equal to the lesser of (i) $10.00 plus any accrued and unpaid distributions thereon and (ii) the NAV of the Company on that date divided by the total number of Preferred Shares then outstanding. The redemption price payable by the Company for a Class A Share pursuant to the non-concurrent retraction right will be equal to the greater of (i) the NAV per Unit determined on that date minus $10.00 plus any accrued and unpaid distributions on the Preferred Share, and (ii) nil.

Annual Concurrent Retraction:
Commencing in 2020 a holder of a Preferred Share may concurrently retract an equal number of Preferred Shares and Class A Shares on the second last Business Day of June of each year, other than in a year when the last Business Day of June is a Maturity Date or any subsequent maturity date (the “Annual Retraction Date”) at a retraction price equal to the NAV per Unit on that date, less any costs associated with the retraction, including commissions and other such costs, if any, related to the liquidation of any portion of the Portfolio required to fund such retraction. Commencing in 2020 a holder of a Class A Share may concurrently retract an equal number of Class A Shares and Preferred Shares on the Annual Retraction Date of each year, at a retraction price equal to the NAV per Unit on that date, less any costs associated with the retraction, including commissions and other such costs, if any, related to the liquidation of any portion of the Portfolio required to fund such retraction.

 
Special Retraction Right

Preferred Shares:
If there is an extension of the term of the Fund beyond June 30, 2021 then there is a special retraction right on June 30, 2021 equal to the lesser value of (i) $10.00 plus any accrued and unpaid distributions and (ii) the net asset value of the Fund on that date divided by the number of Preferred shares then outstanding, provided that notice is given by June *, or if that date is not a business day then the preceding business day, prior to the special retraction date of the extension.
Class A Shares:
f there is an extension of the term of the Fund beyond June 30, 2021 then there is a special retraction right on June 30, 2021 equal to the greater of (i) the net asset value per unit (consisting of one Preferred share and one Class A share) minus $10.00 plus any accrued and unpaid distribution on the Preferred shares and (ii) nil, provided that notice is given by June *, or if that date is not a business day then the preceding business day, prior to the special retraction date of the extension.

 

Symbol(s)

Class A : GDV
Preferred : GDV.PR.A

CUSIP

Class A : 25537Y104
Preferred : 25537Y203

Inception Date

Jun 15, 2018

Manager/Options Advisor

Brompton Funds Limited

Low Fees

Management fee of 0.85% of the net asset value per annum.

Fair Investor Terms

Strong corporate governance
Commitment to low fees and overall cost containment
Prohibition against dilutive equity offerings.

Eligibility

Eligible for RRSPs, DPSPs, RRIFs, RESPs, and TFSAs.

Termination

June 30, 2021, subject to the extension of the term for periods of up to five years as determined by the board of directors.  The announcement of any extension will be made by news release at least 60 days prior to the then current termination date.


 
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.

SUBSCRIBE

By completing this form you consent to receive email from Brompton. Communications include updates on portfolio summaries, commentary, brochures, press releases and other investor resources.

Please let us know which funds are of interest.

  • TSX Traded Funds
  • Mutual Funds
  • Specialty Funds