Brompton Group has announced (on 2026-10-29):
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 continuing strong performance. Class A shareholders of record at the close of business on November 11, 2026 will receive 10 additional class A shares for every 100 class A shares held, pursuant to the Share Split, on November 12, 2026. 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 10%. 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 21.6% per annum total return based on net asset value, outperforming the S&P/TSX Equal Weight Diversified Banks Total Return Index by 6.1% per annum and the S&P/TSX Composite Total Return Index by 9.2% per annum.(1) Since inception, class A shareholders have received cash distributions of $24.65 per share.
Based on the most recently calculated net asset value per unit of the Fund on October 22, 2026, as adjusted for 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 56%.
The class A shares are expected to commence trading on an ex-split basis at the opening of trading on November 10, 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.
Thanks to Assiduous Reader Niagara for bringing this to my attention!