An anonymous director reports

LIFE & BANC SPLIT CORP. ANNOUNCES PREFERRED SHARE DISTRIBUTION RATE

The preferred share distribution rate for Life & Banc Split Corp.'s new five-year term from Oct. 31, 2023, to Oct. 30, 2028, will be 72.5 cents per annum (7.25 per cent on the par value of $10.00 per preferred share) payable quarterly. This represents a pretax equivalent yield of approximately 9.5 per cent. The preferred share distribution rate is based on current market rates for preferred shares with similar terms. The term extension offers preferred shareholders the opportunity to enjoy preferential, tax-advantaged eligible dividends until Oct. 30, 2028. Since inception in October, 2006, to July 31, 2023, the preferred share has paid $8.61 in cash dividends and generated a 5.3 per cent per annum return, outperforming the S&P/TSX preferred share index by 3.7 per cent per annum.

The fund intends to maintain the monthly Class A share distribution rate of 10 cents per Class A share. Since inception to July 31, 2023, Class A shareholders have received cash distributions of $18.35 per share. Over the one-, three-, five- and 10-year periods to July 31, 2023, the Class A share has significantly outperformed both the S&P/TSX Capped Financials Index and the S&P/TSX Composite Index and has delivered a 10.2 per cent per annum return since inception of the fund approximately 17 years ago. Class A shareholders have the option to benefit by reinvesting their cash distributions in a distribution reinvestment plan (DRIP) which is commission free to participants. Class A shareholders can enroll in the DRIP program by contacting their investment adviser.

The fund invests, on an approximately equal weighted basis in a portfolio consisting of common shares of the six-largest Canadian banks (currently, Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, The Bank of Nova Scotia and the Toronto-Dominion Bank) and the four major publicly traded Canadian life insurance companies (currently, iA Financial Corp. Inc., Sun Life Financial Inc., Manulife Financial Corp. and Great-West Lifeco Inc.).

In connection with the extension, shareholders who do not wish to continue their investment in the fund, will be able to retract their preferred shares or Class A shares on Oct. 30, 2023, pursuant to a special retraction right and receive a retraction price that is calculated in the same way that such price would be calculated if the fund were to terminate on Oct. 30, 2023. Pursuant to this option, the retraction price may be less than the market price if the share is trading at a premium to net asset value. To exercise this retraction right, shareholders must provide notice to their investment dealer by Sept. 29, 2023, at 5 p.m. (Toronto time). Alternatively, shareholders may sell their preferred shares and/or Class A shares through their securities dealer at the market price at any time, potentially at a higher price than would be achieved through retraction, or shareholders may take no action and continue to hold their shares.

About Brompton Funds

Founded in 2000, Brompton is an experienced investment fund manager with income-focused investment solutions including exchange-traded funds (ETFs) and other Toronto Stock Exchange-traded investment funds.

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