An anonymous director reports

BROMPTON LIFECO SPLIT CORP. ANNOUNCES EXTENSION OF TERM

Brompton Lifeco Split Corp.'s board of directors has approved an extension of the maturity date of the Class A and preferred shares of the company. The current maturity date of April 29, 2024, will be extended for an additional five-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 five-year term extension allows Class A shareholders to continue their investment in Canadian life insurance companies with an attractive distribution rate of 14.7 per cent, based on the Aug. 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 five years to July 31, 2023, the Class A share has delivered a 12.1 per cent per annum return, which outperformed the S&P/TSX Capped Financials Index by 4.0 per cent per annum and outperformed the S&P/TSX Composite Index by 4.1 per cent per annum. 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 five years to July 31, 2023, the preferred share has delivered a 6.3 per cent per annum return, outperforming the S&P/TSX Preferred Share Index by 6.6 per cent per annum with less volatility.

Brompton Lifeco Split 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 Corp. and Sun Life Financial Inc.

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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