European Dividend Growth Fund Announces ETF Conversion Date

TORONTO, April 17, 2019 (GLOBE NEWSWIRE) -- (TSX: EDGF.UN) Brompton Funds Limited (the “Manager”), the manager of (the “Fund”) is pleased to announce that the Fund will convert into an exchange traded fund (the “Conversion”) called Brompton European Dividend Growth ETF (the “ETF”) at the open of trading on the Toronto Stock Exchange on April 23, 2019.  Unitholders of the Fund approved the Conversion at a special meeting held on February 14, 2019.  Commencing April 23, 2019, the new ticker symbol of the ETF will be EDGF.

The benefits of the Conversion are as follows:

• Lower Management Fee and MER:  The management fee payable by the ETF will be reduced from the Fund’s current level of 1.25% of net asset value (“NAV”) plus applicable taxes to 0.75% of NAV plus applicable taxes.  The Manager also intents to waive a portion of the management fee of the ETF and/or reimburse the ETF to ensure that the sum of the management fee and operating expenses, in each case inclusive of GST/HST, is limited to approximately 0.95% of the NAV of the ETF.
  
   
• Enhanced Flexibility of the Investment Strategy:  The investment strategy of the ETF expands the investment universe and allows for greater flexibility in the ETF’s portfolio after the Conversion.  
  
   
• 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 of the Fund (relative to the NAV per unit of the Fund) will provide a meaningful increase in value for Unitholders.  It is expected that the 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 lower effective cost to buy or sell ETF units.
  
   
• Increased Trading Liquidity: The ETF is expected to realize improved trading liquidity compared to the Fund’s previous levels.  Investors are expected to be able to buy or sell large blocks of ETF units without substantially impacting the trading price of the ETF.
  
   
• Potential for Lower Expenses per Unit due to Growth: As the ETF will distribute units on a continuous basis, it will have the potential to increase the number of such units outstanding through the issuance of new units, thereby spreading its operating expenses across more units and reducing expenses per unit.

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 or visit our website at .

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   Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Commissions, trailing commissions, management fees and expenses all may be associated with exchange-traded fund investments.  Please read the prospectus before investing.  Exchange-traded 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 the ETF, to the future outlook of the ETF and anticipated events or results and may include statements regarding the future financial performance of the 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.