Brompton Lifeco Split Corp. Announces Class A Share SplitTORONTO, Nov. 28, 2024 (GLOBE NEWSWIRE) -- (TSX: LCS, LCS.PR.A) Brompton Lifeco Split Corp. (the “Fund”) is pleased to announce its intention to complete a stock split of its class A shares (the “Share Split”) due to the Fund’s strong performance. Class A shareholders of record at the close of business on December 17, 2024 will receive 14 additional class A shares for every 100 class A shares held, pursuant to the Share Split. The Share Split is subject to the approval of the Toronto Stock Exchange (the “TSX”). Following the Share Split, class A shareholders will continue to receive regular monthly cash distributions targeted to be $0.075 per class A share. As a result, the Share Split will increase the total dollar amount of distributions to be paid to class A shareholders by approximately 14%. The Fund provides a distribution reinvestment plan, on a commission-free basis for class A shareholders that wish to reinvest distributions and realize the benefits of compound growth.
Over the last 10 years, the class A shares have delivered a 14.9% per annum total return based on net asset value, outperforming the S&P/TSX Capped Financials Total Return Index by 4.6% per annum and the S&P/TSX Composite Total Return Index by 6.5% per annum.(1) Since inception, class A shareholders have received cash distributions of $9.03 per share.
Following the completion of the Share Split, the preferred shares of the Fund are expected to have downside protection from a decline in the value of the Fund’s portfolio of approximately 49%.(2) The preferred shares have delivered a 6.2% per annum total return over the last 10 years, outperforming the S&P/TSX Preferred Share Total Return Index by 3.6% per annum with lower volatility.(1)
The class A shares are expected to commence trading on an ex-split basis at the opening of trading on December 17, 2024. No fractional class A shares will be issued and the number of class A shares each holder shall receive will be rounded down to the nearest whole number.
The Fund invests in a portfolio on an approximately equal weighted basis, of common shares consisting of the four Canadian life insurance companies: Great-West Lifeco Inc., iA Financial Corporation Inc., Manulife Financial Corporation and Sun Life Financial Inc.