Brompton Split Bench Corp. announces term extension

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TORONTO, March 24, 2022 (GLOBE NEWSWIRE) — (TSX: SBC, SBC.PR.A) Following a strong performance, Brompton Split Banc Corp. (the “Company”) is pleased to announce that the Board of Directors has approved an extension to the maturity date of the Class A and Preferred Shares of the Company for an additional 5-term until November 29, 2027 The adjusted dividend rate on the Preferred Shares for the extended term will be announced at least 60 days prior to the original maturity date of November 29, 2022 and will be based on market yields for Preferred Shares with similar terms as of that date. . time.

The term extension allows Class A shareholders to continue to invest in the Canadian banking industry with an attractive payout rate of 8.4% based on the March 22, 2022 closing price and the potential for capital appreciation capital. Canadian banks continue to offer attractive dividend yields and return on equity. In addition, the extension of the Company’s term is not a taxable event and allows shareholders to defer potential capital gains tax that would otherwise have been realized upon redemption of the Class A Shares or Preferred Shares. at the end of the term, until these shares are transferred by the shareholders.

From their inception in November 2005 through February 28, 2022, Class A shares generated a total return of 13.2% per year, outperforming the S&P/TSX Capped Financials Index by 3.8% per year and the S&P/TSX Composite Index by 5.8% per year. .(1) From its inception through February 28, 2022, Class A shareholders received cash distributions of $19.15 per share. Class A shareholders also have the option of reinvesting their cash distributions in a dividend reinvestment plan which is commission-free to participants.

The term extension provides preferred shareholders with the opportunity to enjoy preferential cash dividends until November 29, 2027. Since inception, the preferred shares have generated a total return of 5.1% per annum, outperforming the index of S&P/TSX preferred shares by 2.2% per year with declining volatility.(1)

Brompton Split Bench Corp. invests approximately equally in a portfolio of common shares of the six largest Canadian banks (currently Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada , Bank of Nova Scotia and The Toronto-Dominion Bank). In addition, the Company may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purpose of further diversification and potential return.

About Brompton Funds

Founded in 2000, Brompton is an experienced investment fund manager providing income-oriented investment solutions, including exchange-traded funds (ETFs) and other investment funds traded on the TSX. For more information, please contact your investment advisor, call the Brompton 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)

Compound annual returns of net asset value as of February 28, 2022

YTD

1 year 3 years

5 years

10 years

IF
Class A Shares (TSX: SBC) 7.3 % 56.9 % 23.6 % 15.6 % 17.9 % 13.2 %
S&P/TSX Capped Financials Index 2.9 % 31.6 % 15.7 % 11.5 % 12.9 % 9.4 %
S&P/TSX Composite Index -0.1 % 20.2 % 13.1 % 9.8 % 8.5 % 7.4 %
Preferred shares (TSX: SBC.PR.A) 0.8 % 5.1 % 5.1 % 5.0 % 4.9 % 5.1 %
S&P/TSX Preferred Share Index -2.3 % 9.1 % 8.0 % 4.9 % 2.8 % 2.9 %

Returns are for periods ended February 28, 2022 and are unaudited. Inception date November 16, 2005. The table shows the Company’s compounded return on a Class A Share and a Preferred Share for each period indicated relative to the S&P/TSX Capped Financials Index (“Financials Index”). ), the S&P/TSX Composite Index (“Composite”) and the S&P/TSX Preferred Share Index (“Preferred Share Index”) (together, the “Indexes”). The financial index is derived from the composite index based on the financial sector of the Global Industry Classification Standard. The Composite Index tracks the market weighted performance of a broad index of large capitalization issuers listed on the TSX. The Preferred Share Index tracks the market-weighted performance of TSX-listed preferred shares that meet minimum size, liquidity, issuer rating and listing criteria. Class A shares and preferred shares should not mirror the performance of indices that have more diversified portfolios. Indices are calculated net of management fees, fund expenses and trading commissions, while Company performance is calculated net of such fees and expenses. In addition, the performance of the Company’s Class A Shares is affected by the leverage effect provided by the Company’s preferred shares.

You will usually pay brokerage fees to your dealer if you buy or sell shares of the investment funds on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If shares are bought or sold on a stock exchange, investors may pay more than the current net asset value when purchasing shares of the investment fund and may receive less than the current net asset value when sale.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents containing 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 historical compound annual total returns, including changes in share value and reinvestment of all distributions and do not take into account certain charges such as redemption fees or income taxes payable. by any security holder that would have the effect of reducing 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 herein and other matters identified in public documents regarding the fund, the fund’s future prospects and expected events or results and may include statements regarding the future financial performance of the fund. funds. In some instances, forward-looking information may be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “have the intention to”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may differ from this 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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