TORONTO, ONTARIO–(Marketwired – March 6, 2017) – (TSX:SBC) (TSX:SBC.PR.A) As a result of strong performance, Brompton Split Banc Corp. (the “Company”) is pleased to announce that the board of directors has approved an extension of the maturity date of the Class A and Preferred shares of the Company for an additional 5 year term to November 29, 2022. The reset preferred share dividend rate for the extended term will be announced at least 60 days prior to the original November 29, 2017 maturity date and will be based on market yields for preferred shares with similar terms at that time.
The term extension allows Class A shareholders to continue to invest in the Canadian bank sector while offering an attractive distribution rate of 7.1% based on the March 2, 2017 closing price while also providing the opportunity for capital appreciation. Canadian banks continue to have attractive dividend yields and return on equity. As well, the extension of the term of the Fund is not a taxable event and enables shareholders to defer potential capital gains tax liability that would have otherwise been realized on the redemption of the Class A shares or Preferred Shares at the end of the term until such time as such shares are disposed of by shareholders.
Since inception in November 2005 to January 31, 2017, the Class A share has delivered a 12.0%(1) per annum return, which outperformed the S&P/TSX Capped Financials Index by 3.5% per annum and outperformed the S&P/TSX Composite Index by 5.6% per annum. Since inception to January 31, 2017, Class A shareholders have received cash distributions of $13.05. Class A shareholders also have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants.
Since the last term extension on December 1, 2012 to January 31, 2017, the Class A share has generated a 21.7%(1) per annum return which outperformed the S&P/TSX Composite Index by 12.8% per annum and outperformed the S&P/TSX Capped Financials Index by 6.6% per annum.
The term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until November 29, 2022. Since the last term extension on December 1, 2012 to January 31, 2017, the Preferred share has delivered an attractive 4.6%(1) per annum return, outperforming the S&P/TSX Preferred Share Index by 4.7% per annum with less volatility.
Brompton Split Banc Corp. invests in a portfolio, on an approximately equal weight basis, in common shares of 6 Canadian Banks: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and The Toronto-Dominion Bank.
About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton’s investment solutions include TSX traded funds, mutual funds, and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email [email protected] or visit our website at www.bromptongroup.com.
(1)Please see www.bromptongroup.com for returns for all periods.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares 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 shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about the funds. 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 share 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.
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 hereof and we assume no obligation to update or revise them to reflect new events or circumstances.
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