Brompton Funds today announced the completion of the merger of several funds.

BG Advantaged S&P/TSX Income Trust Index Fund, BG Advantaged Equal Weighted Income Fund, Brompton Top 50 Compound Growth Fund, and BG Advantaged Corporate Bond Fund were merged into Brompton Advantaged Tracker Fund — the continuing fund — which has been renamed Brompton Advantaged VIP Income Fund.

This merger was approved at a special meeting of securityholders held on June 9 as part of the reorganization of these funds to address the expected tax on income trusts in 2011.

The merger was implemented on a tax-deferred rollover basis for unitholders at an exchange ratio calculated as the net asset value (NAV) per unit of each merging fund divided by the NAV per unit of Brompton Advantaged Tracker Fund, each determined as at the close of business on July 10, 2008.

Immediately prior to the merger, the NAV per unit of Brompton Advantaged Tracker Fund was reconsolidated on a one to 1.615694 basis to reflect the NAV per unit of Brompton VIP Income Fund on the close of business on July 3, 2008 as these funds employ the same portfolio manager and investment strategy. Brompton Advantaged VIP Income Fund has a tax-advantaged structure in place such that distributions are primarily a return of capital.

Prior to the opening of trading on July 14, Brompton Advantaged VIP Income Fund will have approximately 24.6 million units outstanding and a market capitalization of approximately $309 million. Units of Brompton Advantaged VIP Income Fund issued pursuant to the merger will begin trading on July 14, 2008. As part of the reorganization, the monthly distribution rate for unitholders of record of Brompton Advantaged VIP Income Fund on July 31, 2008 will be to 9.6¢ per unit.