/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
TORONTO, July 14, 2026 /CNW/ – (TSX: SBC) (TSX: SBC.PR.A) Brompton Split Banc Corp. (the “Fund”) is pleased to announce its intention to complete a stock split of its class A shares (“Class A shares”) (the “Share Split”) and that it is undertaking a treasury offering of preferred shares (“Preferred Shares”) (the “Offering”).
The Class A Share Split
The Fund intends to complete a share split of its Class A shares due to the Fund’s strong performance. Class A shareholders of record at the close of business on July 22, 2026 will receive 15 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 15%. 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 23.7% per annum total return based on net asset value, outperforming the S&P/TSX Equal Weight Diversified Banks Total Return Index by 7.1% per annum and the S&P/TSX Composite Total Return Index by 10.9% per annum.(1) Since inception, Class A shareholders have received cash distributions of $24.35 per share.
Based on the most recently calculated net asset value per unit of the Fund on July 9, 2026, as adjusted for the Share Split, the Preferred Shares are expected to have downside protection from a decline in the value of the Fund’s portfolio of approximately 59%.
The Class A shares are expected to commence trading on an ex-split basis at the opening of trading on July 22, 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 Preferred Share Offering
The sales period for this offering is expected to end on Wednesday, July 15, 2026. The Offering is expected to close on or about July 23, 2026 and is subject to certain closing conditions including approval by the TSX.
The Preferred Shares will be offered at a price of $10.35 per Preferred Share to yield 6.0%.(1) The closing price on the TSX for the Preferred Shares on July 13, 2026 was $10.37. The Offering is being led by RBC Capital Markets.
The investment objectives for the Preferred Shares are to provide holders with fixed cumulative preferential quarterly cash distributions, in the amount of $0.15625 per Preferred Share (6.25% per annum on the original $10.00 issue price), and to return the original issue price to holders of Preferred Shares on November 29, 2027.
Purchasers of Preferred Shares in the Offering will be eligible to receive the full September 2026 quarterly dividend of $0.15625 per Preferred Share when the dividend is declared. The Preferred Shares have a Morningstar DBRS rating of Pfd-3 (high).
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.
About Brompton Funds
For over 25 years, Brompton has been providing unique, well-conceived investments for Canadians, with a focus on low management fees, performance driven diversification strategies and attractive income and growth solutions for various market cycles.
A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The Fund intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada.
(1) Annualized yield on offer price. See Standard Performance Data table below.
Brompton Split Banc Corp.
Compound Annual NAV Returns to June 30, 2026
1
Year
3
Years
5
Years
10
Years
Class A Shares (TSX: SBC)
118.9 %
59.6 %
28.3 %
23.7 %
S&P/TSX Equal Weight Diversified Banks Total Return Index
66.6 %
34.0 %
18.9 %
16.6 %
S&P/TSX Composite Total Return Index
32.9 %
23.5 %
14.9 %
12.8 %
Preferred Shares (TSX: SBC.PR.A)
6.4 %
6.4 %
6.0 %
5.5 %
Returns are for the periods ended June 30, 2026 and are unaudited. Inception date November 16, 2005. The table shows the Fund’s compound return on its Class A shares for each period indicated compared with the S&P/TSX Equal Weight Diversified Banks Total Return Index (“Banks Index”), and the S&P/TSX Composite Total Return Index (”Composite Index”) (together the “Indices”) and the Preferred Shares. The Banks Index is the equal-weighted version of the S&P/TSX Diversified Banks Total Return Index, a benchmark including commercial banks whose businesses are derived primarily from commercial lending operations and also have significant activity in the retail banking and small and medium corporate lending. The Composite Index tracks the performance, on a market-weight basis and total return basis, of a broad index of large-capitalization issuers listed on the TSX. The Fund invests in six Canadian banks on an approximately equal-weight basis with up to 10% of its total assets held directly or indirectly in global financial companies; therefore, its performance is not expected to mirror that of the Indices, which have more diversified portfolios and include a substantially larger number of companies. Furthermore, the Indices’ performance is calculated without the deduction of management fees, fund expenses and trading commissions, whereas the performance of the Fund is calculated after deducting such fees and expenses. Additionally, the performance of the Fund’s Class A shares is impacted by the leverage provided by the Fund’s Preferred Shares. The performance information shown is based on net asset value per Class A share and redemption price per Preferred Share and assumes that cash distributions made by the Fund during 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 Fund. Past performance does not necessarily indicate how the Fund will perform in the future.
You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment funds on the TSX or other alternative Canadian trading system (an “exchange”). If 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 fund. You can find more detailed information about the fund in the public filings available at www.sedarplus.ca. 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 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.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.
SOURCE Brompton Split Banc Corp.
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