Brompton Funds Limited (Brompton) is proposing to merge the Taylor North American Equity Opportunities Fund with the new Brompton Global Dividend Growth ETF which is due to be listed on the Toronto Stock Exchange on 18 October.
Brompton Funds is calling a special meeting of holders of units of the Taylor North American Equity Opportunities Fund to consider the proposed merger as it believes that given the fund’s small size, it is becoming increasingly difficult to efficiently execute its investment strategy and maintain portfolio diversification and a reasonable management expense ratio.
The Global Dividend Growth ETF is focussed on investing in an actively managed portfolio composed of large capitalisation 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: stable monthly cash distributions; the opportunity for capital appreciation; and 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.
As a result of the proposed Merger, the Fund expects to offer an accelerated annual redemption on 28 December 2018, payable on 15 January 2019.
The fund will hold a special meeting of unitholders on 30 November 2018 to consider and vote on the proposed Merger.