Investment Grade Managed Duration Income Fund Announces Exchange Ratios for Exchange Option

Purpose Investments Inc., on behalf of the Investment Grade Managed Duration Income Fund (the “Fund”), is pleased to announce the exchange ratios for the exchange offer by the Fund (the “Exchange Option”) being made under the final prospectus of the Fund dated July 30, 2015.

The Fund’s investment objectives are to:

  • (i) provide holders of units with a stable stream of monthly distributions;
  • (ii) preserve the net asset value per unit; and
  • reduce the risk of rising interest rates by managing portfolio duration,

by investing primarily in U.S. and Canadian dollar denominated investment grade preferred securities.

The initial target distribution yield for the fund is 5.0% per annum based on the original subscription price (or $0.0417 per unit per month or $0.50 per unit per annum).

The number of units issuable for each class of security of an Exchange Eligible Issuer (as listed below) (the “Exchange Ratio”) has been determined by dividing the weighted average trading price of such security during the period of five consecutive trading days ending on August 18, 2015 (the “Pricing Period”), as adjusted to reflect distributions declared by any Exchange Eligible Issuer that will not be received by the Fund, by $10.00. The Exchange Ratio for any such securities that do not trade in Canadian dollars have been determined by converting the weighted average trading price on the applicable exchange of such securities into Canadian dollars based on the Bank of Canada noon rate of exchange on the last day of the Pricing Period. Holders of securities of Exchange Eligible Issuers who deposited such securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of the offering of units and will be entitled to receive distributions in respect of such securities of Exchange Eligible Issuers that are declared up to but not including such date. Each Exchange Ratio has been rounded down to five decimal places.

The table below sets out the Exchange Eligible Issuers, the securities of which may be accepted by the Fund pursuant to the Exchange Option, including the name of the Exchange Eligible Issuer, its ticker symbol, its CUSIP number, its ISIN, its volume weighted average trading price during the Pricing Period and the Exchange Ratio.

NAME TICKER SYMBOL CUSIP ISIN VWAP ($) EXCHANGE RATIO
AltaGas Ltd ALA PRA 021361209 CA0213612090 16.5791 1.65791
Artis Real Estate Investment Trust AX PRE 04315L709 CA04315L7097 15.3642 1.53642
Artis Real Estate Investment Trust AX PRA 04315L303 CA04315L3039 17.6858 1.76858
Bank of Montreal BMO PRW 063679880 CA0636798807 21.8789 2.18789
Bank of Montreal BMO PRS 063679401 CA0636794012 22.6751 2.26751
Bank of Montreal BMO PRT 063679609 CA0636796090 22.4687 2.24687
Bank of Nova Scotia/The BNS PRZ 064149610 CA0641496108 22.4256 2.24256
Bank of Nova Scotia/The BNS PRM 064149776 CA0641497767 25.1884 2.51884
Bank of Nova Scotia/The BNS PRY 064149636 CA0641496363 22.3165 2.23165
BCE Inc BCE PRK 05534B679 CA05534B6796 14.9271 1.49271
BCE Inc BCE PRB 05534B695 CA05534B6952 15.5248 1.55248
BCE Inc BCE PRQ 05534B596 CA05534B5962 22.6960 2.26960
BCE Inc BCE PRM 05534B646 CA05534B6465 15.6393 1.56393
BCE Inc BCE PRC 05534B786 CA05534B7869 15.8398 1.58398
Bombardier Inc BBD PRB 097751507 CA0977515075 4.4895 0.44895
Bombardier Inc BBD PRC 097751705 CA0977517055 8.7061 0.87061
Brookfield Asset Management Inc BAM PRX 112585690 CA1125856908 16.1514 1.61514
Brookfield Asset Management Inc BAM PFA 112585641 CA1125856411 22.0071 2.20071
Brookfield Asset Management Inc BAM PFE 112585559 CA1125855595 21.7208 2.17208
Brookfield Asset Management Inc BAM PRR 112585740 CA1125857401 17.5889 1.75889
Brookfield Asset Management Inc BAM PFD 112585567 CA1125855678 21.4301 2.14301
Brookfield Office Properties BPO PRR 112900782 CA1129007821 19.5173 1.95173
Brookfield Office Properties BPO PRP 112900816 CA1129008167 18.3689 1.83689
Brookfield Renewable Power Preferred Equity BRF PRE 11283Q602 CA11283Q6022 20.3272 2.03272
Canadian Imperial Bank of Commerce/Canada CM PRO 136069440 CA1360694402 22.7761 2.27761
Canadian Imperial Bank of Commerce/Canada CM PRP 136069424 CA1360694246 21.8269 2.18269
Canadian Imperial Bank of Commerce/Canada CM PRQ 136069390 CA1360693909 24.0622 2.40622
Canadian Utilities Ltd CU PRC 136717691 CA1367176916 23.1267 2.31267
Canadian Utilities Ltd CU PRD 136717675 CA1367176759 22.5153 2.25153
Canadian Western Bank CWB PRB 136765500 CA1367655000 19.9092 1.99092
Dundee Corp DC PRD 264901802 CA2649018025 15.7925 1.57925
Emera Inc EMA PRF 290876804 CA2908768047 21.5667 2.15667
Emera Inc EMA PRC 290876507 CA2908765076 20.0286 2.00286
Enbridge Inc ENB PRN 29250N774 CA29250N7743 16.8424 1.68424
Enbridge Inc ENB PRY 29250N683 CA29250N6836 16.6221 1.66221
Enbridge Inc ENB PFC 29250N592 CA29250N5929 17.8870 1.78870
Enbridge Inc ENB PRB 29250N709 CA29250N7099 15.3034 1.53034
Enbridge Inc ENB PRF 29250N865 CA29250N8659 16.1166 1.61166
Enbridge Inc ENB PRD 29250N881 CA29250N8816 15.6282 1.56282
Enbridge Inc ENB PRJ 29250N642 CA29250N6422 17.3298 1.73298
Enbridge Inc ENB PRP 29250N758 CA29250N7586 16.4459 1.64459
Enbridge Inc ENB PRH 29250N840 CA29250N8402 15.1518 1.51518
Enbridge Inc ENB PFG 29250N550 CA29250N5507 18.1093 1.81093
Enbridge Inc ENB PFE 29250N576 CA29250N5762 17.9717 1.79717
Fairfax Financial Holdings Ltd FFH PRM 303901797 CA3039017973 21.8153 2.18153
Fairfax Financial Holdings Ltd FFH PRC 303901508 CA3039015084 20.0218 2.00218
First National Financial Corp FN PRA 33564P202 CA33564P2026 12.0882 1.20882
Fortis Inc/Canada FTS PRH 349553826 CA3495538264 16.3110 1.63110
Fortis Inc/Canada FTS PRI 349553818 CA3495538181 15.6050 1.56050
Fortis Inc/Canada FTS PRG 349553834 CA3495538348 19.8011 1.98011
GMP Capital Inc GMP PRB 380134205 CA3801342054 11.5487 1.15487
Great-West Lifeco Inc GWO PRI 39138C866 CA39138C8667 22.2346 2.22346
Husky Energy Inc HSE PRG 448055806 CA4480558069 22.8927 2.28927
Husky Energy Inc HSE PRC 448055400 CA4480554001 22.2486 2.22486
Industrial Alliance Insurance & Financial Services IAG PRG 455871806 CA4558718066 24.5117 2.45117
Innergex Renewable Energy Inc INE PRA 45790B500 CA45790B5009 13.4252 1.34252
Intact Financial Corp IFC PRC 45823T601 CA45823T6016 21.6103 2.16103
Manulife Financial Corp MFC PRC 56501R502 CA56501R5024 21.6392 2.16392
Manulife Financial Corp MFC PRK 56501R742 CA56501R7426 21.3680 2.13680
Manulife Financial Corp MFC PRF 56501R858 CA56501R8580 16.7858 1.67858
National Bank of Canada NA PRW 633067285 CA6330672859 21.7896 2.17896
National Bank of Canada NA PRS 633067319 CA6330673196 22.9494 2.29494
National Bank of Canada NA PRQ 633067335 CA6330673352 24.9959 2.49959
Northland Power Inc NPI PRA 666511308 CA6665113081 14.8458 1.48458
Northland Power Inc NPI PRC 666511605 CA6665116050 18.0662 1.80662
Pembina Pipeline Corp PPL PRI 706327806 CA7063278062 23.5523 2.35523
Pembina Pipeline Corp PPL PRA 706327202 CA7063272024 16.9905 1.69905
Power Financial Corp PWF PRT 73927C738 CA73927C7382 24.0505 2.40505
Power Financial Corp PWF PRF 73927C886 CA73927C8869 24.3414 2.43414
Power Financial Corp PWF PRP 73927C779 CA73927C7796 17.0687 1.70687
Royal Bank of Canada RY PRZ 78012G411 CA78012G4117 22.5135 2.25135
Royal Bank of Canada RY PRH 78012H567 CA78012H5675 22.5365 2.25365
Royal Bank of Canada RY PRA 780085445 CA7800854456 25.0916 2.50916
Royal Bank of Canada RY PRF 780102653 CA7801026534 25.0735 2.50735
Royal Bank of Canada RY PRJ 78012Q112 CA78012Q1129 23.8163 2.38163
Royal Bank of Canada RY PRI 78010A416 CA78010A4164 25.0482 2.50482
Royal Bank of Canada RY PRG 780102554 CA7801025544 25.1530 2.51530
Royal Bank of Canada RY PRM 78012T470 CA78012T4708 23.6445 2.36445
Sun Life Financial Inc SLF PRB 866796303 CA8667963034 22.7190 2.27190
Sun Life Financial Inc SLF PRI 866796832 CA8667968322 23.3463 2.33463
Sun Life Financial Inc SLF PRG 866796881 CA8667968819 16.6445 1.66445
Sun Life Financial Inc SLF PRH 866796865 CA8667968652 20.2065 2.02065
Toronto-Dominion Bank/The TD PFC 891145658 CA8911456587 21.9145 2.19145
Toronto-Dominion Bank/The TD PFB 891145674 CA8911456744 22.1234 2.21234
Toronto-Dominion Bank/The TD PFD 891145633 CA8911456330 24.2372 2.42372
Toronto-Dominion Bank/The TD PFE 891145617 CA8911456173 24.7138 2.47138
Toronto-Dominion Bank/The TD PRY 891145708 CA8911457080 25.0899 2.50899
TransAlta Corp TA PRJ 89346D677 CA89346D6770 14.3959 1.43959
TransCanada Corp TRP PRB 89353D503 CA89353D5038 13.3426 1.33426
TransCanada Corp TRP PRD 89353D883 CA89353D8834 19.8023 1.98023
TransCanada Corp TRP PRC 89353D701 CA89353D7018 13.8793 1.38793
TransCanada Corp TRP PRH 89353D602 CA89353D6028 12.9252 1.29252
TransCanada Corp TRP PRA 89353D404 CA89353D4049 17.4116 1.74116
Veresen Inc VSN PRC 92340R502 CA92340R5024 20.5851 2.05851
iShares S&P/TSX Canadian Preferred Share Index ETF CPD 46431G205 CA46431G2053 13.7749 1.37749
BMO S&P/TSX Laddered Preferred Share Index ETF ZPR 05575R104 CA05575R1047 11.1735 1.11735

The syndicate of agents is being led by National Bank Financial Inc. and includes CIBC World Markets Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Raymond James Ltd., Desjardins Securities Ltd., Dundee Securities Ltd., Global Securities Corporation, Mackie Research Capital Corporation, Manulife Securities Incorporated, PI Financial Corp. and Rothenberg Capital Management Inc.

For further information, please visit our website at www.purposeinvest.com or contact Dan Rubin Vice President, Marketing, at (416) 583-3853 or toll-free at Info@purposeinvest.com

This offering is made by prospectus. The prospectus contains important information about the securities being offered. Copies of the prospectus may be obtained from your IIROC registered financial advisor using the contact information for such advisor. Investors should read the prospectus before making an investment decision.

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