Toronto-based Brompton Funds Ltd. on Wednesday proposed to convert Global Healthcare Income and Growth Fund and Tech Leaders Income Fund from closed-end investment funds into ETFs.
Special meetings of unitholders of units of each of the funds will be held on Feb. 28. During the meetings, unitholders will be asked to approve the conversion of each applicable fund.
Upon the effective date of the conversions, the funds will become Global Health Care Income and Growth ETF and Tech Leaders Income ETF, the firm says in a news release.
Brompton believes unitholders will benefit from the conversions because of increased trading liquidity, reduced bid and ask spreads, lower management expense ratios, and the potential for lower expenses per unit due to growth.
If approved, the conversations are expected to be implemented in April 2018, subject to obtaining the required regulatory approvals.