Barclays Global Investors Canada Ltd. (Barclays Canada) and Brompton Funds LP announced Friday that they have signed a definitive agreement to transfer the trusteeship and management of the BARCLAYSfunds closed-end fund business from Barclays Canada to Brompton.

The transfer includes the following, TSX-listed, closed-end funds:

  • Barclays Advantaged Corporate Bond Fund (BAC.UN);
  • Barclays Advantaged Equal Weighted Income Fund (BAE.UN);
  • Barclays Advantaged S&P(R)/TSX(R) Income Trust Index Fund (BAI.UN);
  • Barclays Income + Growth Split Trust (BDS.UN; BDS.PR.A); and
  • Barclays Top 100 Equal Weighted Income Fund (BTH.UN)

Barclays Canada has agreed to transfer the funds to Brompton as part of a strategic decision to focus its resources on its iShares family of exchange-traded funds.

Barclays Canada believes that transferring the funds to Brompton is in the best long-term interests of unitholders. Brompton is a leader in the management of closed-end funds in Canada with 14 TSX-listed closed-end funds and over $3 billion in assets under management. Brompton’s funds employ a variety of structures, including a suite of funds similar to the Barclays funds, focusing on low-cost, index-based products while maintaining high standards of business practice and corporate governance.

“Transferring the gunds to Brompton will allow Barclays Canada to focus on its iShares funds and will provide investors with continued access to high-quality investment products while ensuring their interests will be protected; therefore we encourage unitholders to vote in favour of the transfer,” explains Rajiv Silgardo, CEO for Barclays Canada.

The transfer of the trusteeship and management of the funds is subject to regulatory and unitholder approvals. To seek unitholder approval for the transfer, Barclays Canada will hold special meetings of unitholders of each of the funds on September 22, 2006.

Unitholder materials, including the notice of special meetings of unitholders and a joint management information circular containing important information relating to the transfer of trusteeship and management of the funds and proposed amendments to the declarations of trust of the funds, will be mailed on or about August 25.

If all necessary approvals are obtained, Barclays Canada anticipates that the transfer will be implemented on or about September 29.