TORONTO, April 23, 2018 (GLOBE NEWSWIRE) -- (TSX:FFI.UN) Flaherty & Crumrine Investment Grade Fixed Income Fund (the “Fund”) announces distributions in the amount of $0.07 per unit per month for record dates from April to June 2018 which is a change from the previous level of $0.08 per unit per month. Brompton Funds Limited (the “Manager”) believes the new distribution level is more appropriate given current market conditions. The Fund’s new distribution rate of $0.07 per unit per month represents a market distribution rate of 6.7%(2) and the Fund continues to enjoy an investment grade rating of P-2(low)f from Standard & Poor’s.
| Record Date | Payment Date |
| April 30, 2018 | May 14, 2018 |
| May 31, 2018 | June 14, 2018 |
| June 29, 2018 | July 16, 2018 |
The Fund has generated an annual compound return of 8.3% over the 5 year period and 9.4% over the 10 year period to March 31, 2018(1). The Fund has paid out $15.74 per unit in cash distributions since inception to March 31, 2018. Special year-end distributions were made by the Fund in each year from 2011 to 2016 for a total amount of $0.84 per unit as income exceeded regular annual distributions during those years, in part due to lower leverage costs within the Fund over the period. The Fund’s performance continues to be enhanced by leverage, however; borrowing costs have risen with one-month US LIBOR increasing from 0.78% to 1.88% from January 2017 to March 2018. At the same time, longer-term interest rates have remained low and credit spreads have narrowed, which has led to lower income earned from the Fund’s portfolio of securities. The Manager believes that the new distribution rate better reflects the Fund’s ongoing distributable income level given current market conditions.
Unitholders are reminded that the Fund offers a distribution reinvestment plan (“DRIP”) which provides unitholders with the ability to automatically reinvest distributions, commission free, and realize the benefits of compound growth. Unitholders can enroll in a DRIP program by contacting their investment advisor.
About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton’s investment solutions include TSX traded funds, mutual funds and flow-through limited partnerships. 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.
| 1 Year | 3 Years | 5 Years | 10 Years | Since Inception | ||||||
| Performance as at March 31, 2018 | Dec. 15/04 | |||||||||
| Flaherty & Crumrine Investment Grade Fixed Income Fund | 7.3% | 6.2% | 8.3% | 9.4% | 5.7% | |||||
| BofA Merrill Lynch 8% Hybrid Preferred Sec. Index | 4.9% | 5.3% | 5.8% | 6.2% | 4.8% | |||||
| BofA Merrill Lynch 8% Capped Corp. US Capital Sec. Index | 5.2% | 3.5% | 4.8% | 7.0% | 5.1% | |||||
(2) Based on April 20, 2018 closing price.
You will usually pay brokerage fees to your dealer if you purchase or sell units of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). If the units are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the investment fund and may receive less than the current net asset value when selling them.
There are ongoing fees and expenses associated with owning units 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 the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account certain fees such as redemption costs or income taxes 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 news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release 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.