LCS.PR.A Brompton Lifeco Split Corp

(TSX: LCS, LCS.PR.A) Brompton Lifeco Split Corp. (the “Company”) is pleased to announce that the board of directors has approved an extension of the maturity date of the class A (the “Class A Shares”) and preferred shares (the “Preferred Shares”) of the Company. The current maturity date of April 29, 2024 will be extended for an additional 5-year term to April 27, 2029. The Preferred Share dividend rate for the extended term will be announced at least 60 days prior to the current April 29, 2024 maturity date and will be based on market yields for preferred shares with similar terms at that time.

The 5-year term extension allows Class A shareholders to continue their investment in Canadian life insurance companies with an attractive distribution rate of 14.7%, based on the August 9, 2023 closing price, and the opportunity for capital appreciation. The extension of the term of the Company is not a taxable event and enables shareholders to defer potential capital gains tax liability that would have otherwise been realized on the redemption of Class A Shares or Preferred Shares at the end of the term, until such time that shares are disposed of by shareholders.

Over the last 5 years to July 31, 2023, the Class A Share has delivered a 12.1% per annum return, which outperformed the S&P/TSX Capped Financials Index by 4.0% per annum and outperformed the S&P/TSX Composite Index by 4.1% per annum.(1) Since inception to July 31, 2023, Class A shareholders have received cash distributions of $7.91. Class A shareholders have the option to reinvest their cash distributions in a dividend reinvestment plan which is commission free to participants.

The term extension offers Preferred shareholders the opportunity to enjoy preferential cash dividends until April 27, 2029. Over the last 5 years to July 31, 2023, the Preferred Share has delivered a 6.3% per annum return, outperforming the S&P/TSX Preferred Share Index by 6.6% per annum with less volatility.(1)  

Brompton Lifeco Split Corp. invests in a portfolio of common shares of Canada’s four largest publicly-listed life insurance companies, on an approximately equal weight basis: Great-West Lifeco Inc., iA Financial Corporation Inc., Manulife Financial Corporation and Sun Life Financial Inc.

About Brompton FundsFounded in 2000, Brompton is an experienced investment fund manager with income focused investment solutions including exchange-traded funds (ETFs) and other TSX traded investment funds. 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)Compound Annual NAV Returns to July 31, 2023	YTD		1-Yr		3-Yr		5-Yr		10-Yr		S.I.
Class A Shares (TSX: LCS)	45.1	%	74.1	%	66.8	%	12.1	%	12.3	%	2.9	%
S&P/TSX Capped Financials Index	7.7	%	6.3	%	17.1	%	8.1	%	10.2	%	7.3	%
S&P/TSX Composite Index	8.5	%	8.4	%	11.8	%	8.0	%	8.4	%	5.7	%
Preferred Shares (TSX: LCS.PR.A)	3.7	%	6.4	%	6.4	%	6.3	%	6.1	%	5.8	%
S&P/TSX Preferred Share Index	1.6	%	(7.4	%)	3.7	%	(0.3	%)	1.0	%	1.5	%

Returns are for the periods ended July 31, 2023 and are unaudited. Inception date April 18, 2007. The table shows the Company’s compound returns on a Class A Share and Preferred Share for each period indicated, compared with the S&P/TSX Capped Financials Index (‘‘Financials Index’’), the S&P/TSX Composite Index (‘‘Composite Index’’) and the S&P/TSX Preferred Share Index (“Preferred Index”) (together the “Indices”). The Financials Index is derived from the Composite Index based on the financials sector of the Global Industry Classification Standard. The Composite Index tracks the performance, on a market-weight basis, of a broad index of large-capitalization issuers listed on the Toronto Stock Exchange (“TSX”). The Preferred Index tracks the performance, on a market-weight basis, of preferred shares listed on the TSX that meet the criteria relating to size, liquidity and issuer rating. The Company passively invests on an approximately equal-weight basis in a portfolio comprised of four Canadian life insurance companies which are in both the Financials Index and the Composite Index. Since the Indices have more diversified portfolios, it is not expected that the Company’s performance will mirror that of the Indices. The Indices are calculated without the impact of management fees, fund expenses and trading commissions, whereas the performance of the Company is calculated after deducting such fees and expenses. Further, the performance of the Company’s Class A Shares is impacted by the leverage provided by the Company’s Preferred Shares. Past performance does not necessarily indicate how the Company will perform in the future. The information shown is based on net asset value per Class A Share, or the redemption price per Preferred share and assumes that distributions made by the Company on the Class A Shares and Preferred Shares in the periods shown were reinvested (at net asset value per Class A Share or the redemption price per Preferred Share) in additional Class A Shares and Preferred Shares of the Company.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the Toronto Stock Exchange 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 investment 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 company. You can find more detailed information about the company in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share 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 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 Company, to the future outlook of the company and anticipated events or results and may include statements regarding the future financial performance of the Company. 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.