Monday July 25th, 2016
Purpose Investments Inc. (“Purpose”), a leading provider of exchange traded funds (“ETFs”), mutual funds and closed-end funds, and Redwood Asset Management Inc. (“Redwood”) are pleased to announce that they and the shareholders of Redwood have entered into a definitive agreement pursuant to which Purpose will acquire all the outstanding shares of Redwood. The transaction is subject to customary regulatory approvals.
The acquisition will give Purpose 100% ownership of Redwood, a Toronto-based investment fund manager, bringing together the companies’ resources and product offerings. Following the closing of the transaction, Redwood will continue to operate as a separate entity under its own brand and its current management team with Peter Shippen, President and CEO at Redwood continuing to lead the company.
“At Purpose, we have always strived to be the leading innovator in the investment management space, providing high quality investment solutions with fair fees to Canadians,” said Som Seif, President and CEO at Purpose Investments. “Redwood’s unique investment offerings backed by the management of the best-in-class specialist investment boutiques complements our promise to continue bringing to market high quality and fundamental, rules-based investment strategies to Canadians.”
This transaction is anticipated to add Redwood’s $320 million in assets under management (AUM) to Purpose’s business. Purpose’s expertise in quantitative investing, alternatives and ETFs with Redwood’s flexible solutions will be combined to offer clients a robust selection of quantitative and actively managed funds for their portfolios. No changes are currently planned for the funds or the sub-advisors.
“We are thrilled to work alongside the team at Purpose Investments and together grow a fund management business uniquely positioned to deliver both low cost quantitative and unique active strategies to advisors and their clients,” said Peter Shippen, President and CEO at Redwood. “Purpose has a strategic vision for offering both active and quantitative strategies that align with the investment philosophy we have always abided by, and we are excited about Redwood’s future alongside Purpose.”
“At Purpose, we believe in the value of combining both active and passive investment strategies into well-diversified portfolio solutions. Adding Redwood’s business into Purpose’s aligns with our long-term goal to be the leading independent investment management firm in Canada.” continued Seif. “Bringing in a high quality active management component to our full-set of investment product and service offerings has always been part of our plan. With Redwood now part of the team, going forward you can expect us to expand our existing investment offerings and in the process create deeper and stronger relationships. ”
About Purpose Investments Inc.
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 $2 billion in assets under management and currently offers 18 exchange traded funds and mutual funds and closed-end funds across multiple asset classes and both traditional and alternative investment strategies.
Purpose is the manager of NexC Partners Corp. (NXC), an investment corporation which invests in a portfolio of North American dividend-paying equity securities, plus owns an equity stake in Purpose. More information about Purpose’s product offerings is available at www.purposeinvest.com .
About Redwood Asset Management Inc.
Redwood Asset Management is a Toronto-based investment fund manager, are focused on delivering unique investment solutions managed by boutique global investment managers to Canadian investors. More information about Redwood’s product offerings is available at www.redwoodasset.com.