Brompton Proposes Merger Of Taylor North American Equity Opportunities Fund with Brompton Global Dividend Growth ETF

TORONTO, Oct. 15, 2018 (GLOBE NEWSWIRE) -- (TSX: TOF.UN) Brompton Funds Limited ("Brompton" or the "Manager"), the Manager of Taylor North American Equity Opportunities Fund (the "Fund") announces that it is calling a special meeting (the "Meeting") of holders (the "Unitholders") of units (the "Units") of the Fund.  Given the small size of the Fund, it is becoming increasingly difficult to efficiently execute the Fund's investment strategy and maintain portfolio diversification and maintain a reasonable management expense ratio.  The purpose of the Meeting, therefore, is to consider the merger of the Fund with Brompton Global Dividend Growth ETF ("Global Dividend Growth ETF"), with Global Dividend Growth ETF being the continuing fund (the "Merger").  Global Dividend Growth ETF is expected to be listed on the Toronto Stock Exchange starting on October 18, 2018 and is focused on investing in an actively managed portfolio composed of large capitalization global equities that have a history of or, in the Manager's view, potential for, dividend growth.  Its investment objectives are to provide unitholders with: (a) stable monthly cash distributions; (b) the opportunity for capital appreciation; and (c) lower overall volatility of portfolio returns than would otherwise be experienced by owning securities of global dividend growth companies directly.  All costs of the Merger, including with respect to the Meeting, will be borne by the Manager.

The Manager believes that the Merger, if approved by the Fund's Unitholders, provides Unitholders with the following benefits:

• Exposure to Global Dividend Growth Equities and Monthly Income: Global Dividend Growth ETF will invest in an actively managed portfolio composed of large capitalization global equities that have a history of or, in the Manager's view, potential for dividend growth. Global dividend growth equities have historically outperformed the broader global equity market with lower volatility. Global Dividend Growth ETF is expected to have a monthly distribution of approximately 6.0% (based on an opening net asset value of $20).
   
• Lower Management Fee for Unitholders: The management fee rate for Global Dividend Growth ETF will be 0.75% of the net assets of Global Dividend Growth ETF, as compared to the Fund's management fee rate of 1.0% of the net assets of the Fund. Global Dividend Growth ETF will not pay a trailer fee or a performance fee, both of which are currently paid by the Fund.
   
• Lower Management Expense Ratio: The management expense ratio for units of Global Dividend Growth ETF ("ETF Units") is expected to be a maximum of approximately 0.95%, which is approximately 1.63% lower than the Units.
   
• Increased Trading Liquidity: The ETF Units are listed for trading on the TSX under the symbol "BDIV".  As an exchange-traded fund, approved dealers acting as market makers for Global Dividend Growth ETF will be able to offer or bid for large volumes of ETF Units on a stock exchange, as approved dealers have the ability to create or redeem ETF Units daily in large blocks directly from Global Dividend Growth ETF. This is expected to result in significantly improved liquidity relative to the current trading liquidity of the Units, allowing an investor to buy or sell large amounts of ETF Units without materially affecting the market price of Global Dividend Growth ETF.
   
• Better Trading Price Relative to NAV per Unit and Reduced Bid/Ask Spread: The Manager anticipates that an improvement in the trading price of the Units (relative to net asset value per Unit) will provide a meaningful increase in value for Unitholders. As at October 12, 2018, the Fund had a 3.6% discount to net asset value.  As Global Dividend Growth ETF is an exchange-traded fund, it is therefore expected that Global Dividend Growth ETF's bid/ask spreads will be significantly reduced from the Fund's bid/ask spread. This is beneficial to investors because a smaller bid/ask spread is expected to result in a lower effective cost to buy or sell ETF Units.
   
• The Merger is expected to be implemented on a Tax-Deferred Basis: The Merger is expected to be implemented on a tax-deferred basis to Unitholders.
   
• Costs and Expenses of the Merger: All costs of the Merger incurred by the Fund will be borne by the Manager and not by the Fund, Global Dividend Growth ETF or either of their respective unitholders.

As a result of the proposed Merger, the Fund expects to offer an accelerated annual redemption on December 28, 2018, payable on January 15, 2019. 

The Fund will hold a special meeting of Unitholders on November 30, 2018 to consider and vote on the proposed Merger.  Unitholders of record at the close of business on October 31, 2018 will be entitled to vote at the Meeting.  The proposed Merger will be subject to any required regulatory approvals and the Manager expects the effective date of the Merger to take place on or about January 16, 2019.  Details of the proposed Merger will be further outlined in the Fund's notice of meeting and management information circular that will be prepared and delivered to Unitholders in connection with the special meeting and will be available on www.sedar.com.

About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with over $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.

You will usually pay brokerage fees to your dealer if you purchase or sell units of an investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an "exchange").  If the units are purchased or sold on an exchange, investors may pay more than the current NAV when buying units of an investment fund and may receive less than the current NAV 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.  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 and Global Dividend Growth ETF, to the future outlook of the Fund and Global Dividend Growth ETF and anticipated events or results and may include statements regarding the future financial performance of the Fund and Global Dividend Growth ETF.  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.