Brompton Funds has announced:
Brompton Split Banc 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 February 24, 2026 will receive 20 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”).
Class A shareholders will continue to receive regular monthly cash distributions targeted to be $0.10 per class A share following the Share Split. As a result, the total dollar amount of distributions to be paid to class A shareholders is expected to increase by approximately 20%. 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 20.3% per annum total return based on net asset value, outperforming the S&P/TSX Equal Weight Diversified Banks Total Return Index by 5.6% per annum and the S&P/TSX Composite Total Return Index by 7.4% per annum.(1) Since inception, class A shareholders have received cash distributions of $23.85 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 54%.(2)
The class A shares are expected to commence trading on an ex-split basis at the opening of trading on February 24, 2026. 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 Share Split is a non-taxable event.
The Fund invests on an approximately equally weighted basis in a portfolio (the “Portfolio”) of common shares of the six largest Canadian banks: Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of Montreal. In addition, the Fund may hold up to 10% of the total assets of the Portfolio in investments in global financial companies for the purpose of enhanced diversification and return potential.
This follows the 117-new-for-100-old Capital Unit split announced last October.
Thanks to Assiduous Reader newbiepref for bringing this to my attention.
This would lead one to believe that there should be a new pref issue for SBC at some point to bring the number of pref shares up to the number of capital shares. That said, Brompton did the same thing with LCS capital shares (announced on Jan 19 https://www.bromptongroup.com/wp-content/uploads/2026/01/LCS-Share-Split-Announcement-Jan-19-Final.pdf , effective Jan 27, yet no new pref issue as yet, despite their being about 21% more capital shares than pref shares. Soon I guess?
Is there a time period within which these fund managers are compelled to bring the pref-capital shares into balance? Are they even required to do so? I assume that they are. And I certainly don’t think that they can use the ATM program to issue sufficient shares to bring these into balance (Brompton would have to sell about 5.3 million shares of SBC.PR.A, almost impossible in the ATM given the liquidity of these shares).
12:12 PM EST, 03/06/2026 (MT Newswires) — Brompton Split Banc (SBC.TO, SBC.PR.A) on Friday said it completed a treasury offering of preferred shares for proceeds of approximately $55.3 million.
The company said that the preferred shares will trade on the Toronto Stock Exchange under the existing symbol SBC.PR.A.
The preferred shares were offered at a price of $10.40 each to yield 6.0%.
“The Fund invests on an approximately equally weighted basis in a portfolio of common shares of the six largest Canadian banks: Royal Bank of Canada, The Bank of Nova Scotia, National Bank of Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Bank of Montreal, ” said the company.