TORONTO, May 01, 2019 (GLOBE NEWSWIRE) -- (TSX: LCS, LCS.PR.A) Brompton Lifeco Split Corp. (the “Company”) is pleased to announce that it has completed a private placement of preferred shares for aggregate gross proceeds of approximately $12.8 million (the “Private Placement”). Pursuant to the Private Placement, 1,284,805 preferred shares were sold to investors at a price of $10.00 per preferred share.
The preferred shares were offered in order to maintain an equal number of class A shares and preferred shares outstanding following the April 29, 2019 special retraction. As a result of the successful completion of the Private Placement, a greater number of shares of the Company will remain outstanding, which will maintain more market liquidity for both holders of the preferred shares and class A shares of the Company and also help sustain a lower overall management expense ratio.
Over the last five years to March 31, 2019, the preferred shares have delivered a 5.9% per annum total return based on net asset value, outperforming the total return of the S&P/TSX Preferred Share Index by 5.9% per annum with lower volatility. Since inception in April 2007, the preferred shares have provided a total return of 5.6% per annum.(1)
The Company invests in a portfolio of common shares of Canada’s four largest publicly-listed life insurance companies, on an approximately equal weight basis: Great-West Lifeco Inc., Industrial Alliance Insurance and Financial Services Inc., Manulife Financial Corporation and Sun Life Financial Inc.
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 and mutual funds. 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 info@bromptongroup.com or visit our website at www.bromptongroup.com.
| (1)Annual Compound Returns* | 1-Year | 3-Year | 5-Year | 10-Year | Since Inception (April 18, 2007) | |||||
| Brompton Lifeco Split Corp. – Class A | (14.5 | %) | 10.5 | % | 3.6 | % | 32.9 | % | (2.1 | %) |
| S&P/TSX Capped Financials Total Return Index | 3.8 | % | 10.9 | % | 8.5 | % | 14.0 | % | 7.4 | % |
| S&P/TSX Composite Total Return Index | 8.1 | % | 9.3 | % | 5.4 | % | 9.5 | % | 5.4 | % |
| Brompton Lifeco Split Corp. – Preferred | 5.9 | % | 5.9 | % | 5.9 | % | 5.6 | % | 5.6 | % |
| S&P/TSX Preferred Share Total Return Index | (6.8 | %) | 6.2 | % | 0.0 | % | 4.0 | % | 1.4 | % |
*Source: Brompton, Thomson Reuters. Returns are for the periods ended March 31, 2019. The table above shows the compound annual total returns of the Company’s class A shares and, preferred shares for each period indicated, compared with the compound, annual total returns of the S&P/TSX Capped Financials Index (“Financials Index”), the S&P/TSX Preferred Share Index (“Preferred Index”) and the S&P/ TSX Composite Index (“Composite Index”). The Financials Index is derived from the Composite Index based on the financials sector of the Global Industry Classification Standard; the Composite Index tracks the performance, on a market-weight basis, of a broad index of large-capitalization issuers listed on the Toronto Stock Exchange. The Preferred Index is comprised of preferred shares listed and trading on the Toronto Stock Exchange that meet criteria relating to size, liquidity, and issuer rating. The Company passively invests on an equal-weight basis in a portfolio comprised of four Canadian life insurance companies which are in both the Financials Index and the Composite Index. Since the indices have more diversified portfolios, it is not expected that the company’s performance will mirror that of the indices. Further, the indices are calculated without the impact of management fees and fund expenses, whereas the performance of the Company is calculated after deducting such fees and expenses.
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 fund. You can find more detailed information about the Company 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 Company, to the future outlook of the Company and anticipated events or results and may include statements regarding the future financial performance of the Company. 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.