Not for distribution to U.S. newswire services or for dissemination in the United States.
Toronto, Ontario--(Newsfile Corp. - April 30, 2026) - Brompton Lifeco Split Corp. (TSX: LCS) (TSX: LCS.PR.A) (the "Fund") is pleased to announce it has renewed its at-the-market equity program ("ATM Program") so that the Fund can issue class A and preferred shares (the "Class A Shares" and "Preferred Shares", respectively) to the public from time to time, at the Fund's discretion. This ATM Program replaces the prior program established in April 2024 that has terminated. Any Class A Shares or Preferred Shares sold under the ATM Program will be sold through the Toronto Stock Exchange (the "TSX") or any other marketplace in Canada on which the Class A Shares and Preferred Shares are listed, quoted or otherwise traded at the prevailing market price at the time of sale. Sales of Class A Shares and Preferred Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated April 29, 2026 (the "Equity Distribution Agreement") with RBC Capital Markets (the "Agent").
Sales of Class A Shares and Preferred Shares will be made by way of "at-the-market distributions" as defined in National Instrument 44-102 Shelf Distributions on the TSX or on any marketplace for the Class A Shares and Preferred Shares in Canada. Since the Class A Shares and Preferred Shares will be distributed at the prevailing market prices at the time of the sale, prices may vary among purchasers during the period of distribution. The ATM Program is being offered pursuant to a prospectus supplement dated April 29, 2026 to the Fund's short form base shelf prospectus dated April 29, 2026. The maximum gross proceeds from the issuance of the shares will be $175 million for each of the Class A and Preferred Shares. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor or from representatives of the Agent and are available on SEDAR+ at www.sedarplus.ca.
The volume and timing of distributions under the ATM Program, if any, will be determined at the Fund's sole discretion. The ATM Program will be effective until May 29, 2028, unless terminated prior to such date by the Fund. The Fund intends to use the proceeds from the ATM Program in accordance with the investment objectives and investment strategies of the Fund, subject to the investment restrictions of the Fund.
The Fund invests in a portfolio of common shares of Canada's four largest publicly-listed life insurance companies, on an approximately equally weighted basis: Great-West Lifeco Inc., iA Financial Corporation Inc., Manulife Financial Corporation and Sun Life Financial Inc.
The investment objectives for the Class A Shares are to provide their holders with regular monthly cash distributions targeted to be $0.075 per Class A Share and to provide holders of Class A Shares with the opportunity for growth in the net asset value per Class A Share.
Over the last 10 years, the Class A Shares have delivered a 21.7% per annum total return based on net asset value, significantly outperforming the S&P/TSX Capped Financials Index by 7.7% per annum and the S&P/TSX Composite Total Return Index by 9.1% per annum.(1)
The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential quarterly cash distributions currently in the amount of $0.175 per Preferred Share (7.0% per annum on the original $10.00 issue price) and to return the original issue price to holders of Preferred Shares on April 27, 2029.
The Preferred Shares have returned 6.4% per annum over the last 10 years.(1) Based on the most recently calculated net asset value per unit of the Fund on April 23, 2026, the Preferred Shares have downside protection from a decline in the value of the Fund's portfolio of approximately 52%.
About Brompton Funds
For over 25 years, Brompton has been providing unique, well-conceived investments for Canadians, with a focus on low management fees, performance driven diversification strategies and attractive income and growth solutions for various market cycles. 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 info@bromptongroup.com or visit our website at www.bromptongroup.com.
(1) See Performance table below.
| Brompton Lifeco Split Corp. Compound Annual Returns to March 31, 2026 | 1-Yr | 3-Yr | 5-Yr | 10-Yr |
| Class A Shares (TSX: LCS) | 18.6% | 47.0% | 27.8% | 21.7% |
| S&P/TSX Capped Financials Total Return Index | 34.4% | 24.6% | 16.4% | 14.0% |
| S&P/TSX Composite Total Return Index | 34.9% | 21.2% | 15.2% | 12.6% |
| Preferred Shares (TSX: LCS.PR.A) | 7.2% | 6.9% | 6.7% | 6.4% |
Returns are for the periods ended March 31, 2026 and are unaudited. The table shows the compound return on a Class A Share compared with the S&P/ TSX Capped Financials Total Return Index ("Financials Index") and the S&P/ TSX Composite Total Return Index ("Composite Index")(together, the "Indices") and the compound return on a Preferred Share for each period indicated. The Financials Index is derived from the Composite Index based on the financials sector of the Global Industry Classification Standard. Composite Index tracks the performance, on a market weight basis and total return basis, of a broad index of large-capitalization issuers listed on the TSX). The Fund invests in four Canadian insurance companies on an approximately equal-weight basis; therefore, its performance is not expected to mirror the performance of the Indices, which have more diversified portfolios and include a substantially larger number of companies. Furthermore, the Indices' performance is calculated without the deduction of management fees, fund expenses and trading commissions, whereas the performance of the Fund is calculated after deducting such fees and expenses. Additionally, the performance of the Class A Shares is impacted by the leverage provided by the Preferred Shares. The performance information shown is based on the net asset value per Class A Share and the redemption price per Preferred Share, and assumes that cash distributions made by the Fund during the periods shown were reinvested at net asset value per Class A Share and the redemption price per Preferred Share in additional Class A Shares and Preferred Shares of the Fund. Past performance does not necessarily indicate how the Fund will perform in the future.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the Fund on the TSX or other alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the Fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning shares 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 its public filings available at www.sedarplus.ca. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income tax payable by any securityholder that would have reduced 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 in this document and to other matters identified in public filings relating to the Fund, to the future outlook of the Fund and anticipated events or results and may include statements regarding the future financial performance of the Fund. 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.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/295302
Source: Brompton Funds Limited
