Brompton Funds Limited (Brompton), the manager of European Dividend Growth Fund is proposing tom convert the fund from a closed-end investment product into an ETF.
Unitholders of the fund will be asked to approve the conversion at a special meeting on 14 February. If approved, the fund will become the Brompton European Dividend Growth ETF.
All costs of the Ccnversion, including with respect to the Meeting, will be borne by the Manager.
The manager believes that Unitholders will benefit from the conversion for several reasons including a lower management fee and management expense ratio; enhanced flexibility for the investment strategy; a better trading price relative to NAV per unit and reduced bid/ask spread; increased trading liquidity; and the potential for lower expenses per unit due to growth.
Unitholders of record of the Fund at the close of business on 15 January, 2019 will be entitled to vote at the Meeting of the fund. If approved, the Conversion is expected to be implemented in April 2019, subject to obtaining the required regulatory approvals. Details of the proposed Conversion will be further outlined in the Fund’s Notice of Special Meeting of Unitholders and management information circular that will be prepared and delivered to Unitholders in connection with the meeting.