Purpose Investments Inc. Announces Fund Changes and Enhancements to Funds Managed by Redwood Asset Management Inc.
February 23 2018 - 5:51PM
This press release is for information
purposes only and does not constitute an offer to sell or a
solicitation to buy the securities referred to herein. This press
release is not for dissemination in the United States or for
distribution to U.S. news wire services.
Purpose Investments Inc. (“
Purpose”) is pleased to
announce the next phase of enhancements to certain Redwood Asset
Management Inc. ("
Redwood”) investment funds. In
an effort to significantly improve and simplify the experience for
investors and advisors, Redwood - a wholly owned subsidiary of
Purpose - has recently lowered fees, enhanced strategies, and
announced plans to launch ETF series or classes of select
funds. Purpose is now proposing to further streamline the
fund lineup, subject to applicable regulatory and securityholder
approvals.
“Our vision at Purpose is to provide investors
with access to innovative solutions that help drive better
portfolio outcomes,” said Som Seif, Purpose President and Chief
Executive Officer. “When we took over management of these assets on
behalf of our clients and investors in December 2017, we shared our
vision to improve the products through strategy enhancements and
lower fees. Today, we are delivering on those promises with
immediate benefits to our clients and investors. The proposed
changes are expected to provide total cost savings of approximately
20% on average.”
Specifically, and subject to all required
securityholder and regulatory approvals, Redwood is proposing the
following fund mergers (the “Mergers”):
TERMINATING FUND |
CONTINUING FUND |
Redwood Global Resource Fund(formerly LOGiQ Global Resource
Fund) |
Purpose Global Resource Fund(formerly Redwood Resource Growth &
Income Fund and LOGiQ Resource Growth and Income Class) |
Redwood Energy Income Fund(formerly LOGiQ Advantage Oil & Gas
Income Fund) |
Purpose Global Resource Fund(formerly Redwood Resource Growth &
Income Fund and LOGiQ Resource Growth and Income Class) |
Redwood Tactical Equity Fund(formerly LOGiQ Tactical Equity
Class) |
Purpose Global Innovators Fund (formerly Redwood Global Innovators
Fund, Redwood Global Opportunities Fund and LOGiQ Global
Opportunities Class) |
Redwood Total Return Fund(formerly LOGiQ Total Return Fund) |
Purpose Global Innovators Fund (formerly Redwood Global
Innovators Fund, Redwood Global Opportunities Fund and LOGiQ Global
Opportunities Class) |
Redwood Growth Fund(formerly LOGiQ Growth Fund) |
Purpose Special Opportunities Fund(formerly Redwood Special
Opportunities Fund and LOGiQ Special Opportunities Class) |
Redwood Global Balanced Income Fund(formerly LOGiQ Global Balanced
Income Class) |
Purpose Multi-Asset Income Fund(formerly Redwood High Income
Fundand LOGiQ High Income Fund) |
Redwood Balanced Income Fund(formerly LOGiQ Balanced Monthly
Income Class) |
Purpose Multi-Asset Income Fund(formerly Redwood High Income
Fundand LOGiQ High Income Fund) |
Redwood Monthly Income Fund(formerly LOGiQ VIP Income Fund) |
Purpose Multi-Asset Income Fund(formerly Redwood High Income
Fundand LOGiQ High Income Fund) |
Redwood Advantage Monthly Income Fund(formerly LOGiQ Advantage VIP
Income Fund) |
Purpose Multi-Asset Income Fund(formerly Redwood High Income
Fundand LOGiQ High Income Fund) |
Redwood Global Financials Income Fund(formerly Global Capital
Securities Trust) |
Purpose US Preferred Share Fund(formerly Redwood U.S. Preferred
Share Fund) |
Redwood Floating Rate Bond Fund(formerly Voya Diversified Floating
Rate Senior Loan Fund) |
Purpose Floating Rate Income Fund(formerly Redwood Floating Rate
Income Fundand Voya Floating Rate Senior Loan Fund) |
If all necessary approvals are obtained, the
Mergers will be effective on or about April 23, 2018 (the
“Effective Date”).
In accordance with applicable legal
requirements, securityholders of each of the Terminating Funds and
of Purpose Global Innovators Fund, Purpose US Preferred Share Fund,
Purpose Multi-Asset Income Fund and Purpose Floating Rate Income
Fund will be required to approve their Mergers. Such
securityholders will receive a Notice of Meeting and a Management
Information Circular in accordance with applicable securities laws.
The required securityholder approvals will be sought at special
meetings to be held on or about April 17, 2018 for securityholders
of record as of March 12, 2018.
Redwood Energy Income Fund, Redwood Monthly
Income Fund, Redwood Advantage Monthly Income Fund, Redwood Global
Financials Income Fund and Redwood Floating Rate Bond Fund are each
Terminating Funds structured as closed-end funds (the
“Closed-End Terminating Funds”). Should the
Mergers involving the Closed-End Terminating Funds be approved, it
is expected their units will be delisted from the Toronto Stock
Exchange (“TSX”) at the close of business on the
day prior to the Effective Date, subject to the approval of the TSX
and in accordance with any conditions of such approval.
Securityholders of the Closed-End Terminating Funds will not be
able to trade their units on the TSX after the de-listing date.
Should a Merger receive all required approvals,
the right of securityholders of the Terminating Funds, other than
Closed-End Terminating Funds, to purchase or switch their
securities of the Terminating Fund will cease as of the close of
business two (2) days prior to the Effective Date.
Securityholders of a Terminating Fund, other than the Closed-End
Terminating Funds, will have the right to redeem their securities
up to the close of business on the Effective Date. Following
a Merger, pre-authorized chequing plans, systematic withdrawal
plans and any other optional service that had been established with
respect to the Terminating Fund will be re-established with respect
to the Continuing Fund.
As noted above, the Mergers are expected to
result in cost savings to fund investors. Other than in
respect of the Merger of Redwood Global Financials Income Fund into
Purpose US Preferred Share Fund, the management fees of each series
of each Continuing Fund will be the same as or lower than the
corresponding series of a Terminating Fund.
If approved, Redwood Floating Rate Bond Fund
will be merged into Purpose Floating Rate Income Fund.
Purpose Floating Rate Income Fund is currently a closed-end fund;
however, securityholders of this fund previously approved its
conversion into an open-end exchange traded fund. Such
conversion is expected to occur shortly after the Effective
Date.
In the case of the Merger of Redwood Global
Resource Fund into Purpose Global Resource Fund, if approved,
Redwood Global Resource Fund securityholders will move from a fund
with a risk rating of “medium to high” to a Continuing Fund with a
risk rating of “high”.
Redwood Energy Income Fund and Redwood Advantage
Monthly Income Fund each currently pursue their investment
objectives by using a forward agreement to obtain tax-advantaged
returns. Each fund’s forward agreement will be completed on
March 21, 2018 in accordance with its terms and, under current
Canadian tax laws, such funds cannot thereafter continue to use
forward agreements for tax-advantaged exposure. Accordingly,
commencing on or about March 21, 2018, each fund will obtain
exposure to the portfolio of its reference fund without the use of
a forward agreement. However, each fund will continue to
provide tax-advantaged returns in accordance with its investment
objectives up until the Effective Date owing to loss-carry-forwards
available to each fund. In addition, each fund will save
costs as neither will continue to incur the annual costs associated
with its forward agreement. Any distribution of capital gains
by these funds resulting from the completion of their forward
agreements will be announced in a future press release.
About Purpose
Investments
Purpose Investments is an asset management firm
inspired by the belief that all investors should have access to
great investment products along with low fees. Purpose
believes in focusing first on managing risk and creating value that
is currently missing from the marketplace, thus empowering all
Canadians to be better investors. Purpose has over $4.9
billion in assets under management and currently offers 50 exchange
traded funds and mutual funds and 16 closed-end funds across
multiple asset classes and both traditional and alternative
investment strategies.
For further information please contact: Nancy TurnerPurpose
Investments Inc. Tel: (877) 789-1517 Email:
info@purposeinvest.com