Brompton launches Tech Leaders Income fund

Brompton Funds Management has announced that its Tech Leaders Income Fund has filed a preliminary prospectus for a public offering of units at a price of $10.00 per unit.

The fund was created to invest in an equal-weight portfolio consisting of equity securities of 15 leading technology companies which have market capitalization of at least U.S. $15 billion, are included in either the S&P 500 Index or S&P/TSX 60 Index, and which generate the highest combined ratings from a ranking system which gives equal consideration to (i) growth (as represented by high earnings-per-share growth), (ii) value (as represented by low price-to-earnings ratio), and (iii) quality (as represented by high return-on-equity). The portfolio will be rebalanced to these criteria at least annually.

The fund’s investment objectives are to provide unitholders with monthly distributions and the opportunity for capital appreciation. Distributions are initially targeted at 6.5% per annum based on the issue price of $10.00 per unit. Substantially all of the portfolio’s U.S. dollar exposure will be hedged to Canadian dollars.

The manager has selected Highstreet Asset Management to be the option advisor. The option advisor intends to sell call options each month on up to, and not more than, 25% of the equity securities of each technology company held in the portfolio. Highstreet Asset Management is an investment management firm with total assets under management of approximately $6.4 billion as of December 31, 2010.

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