Toronto December 19, 2023 – Purpose Investments Inc. (“Purpose”), in its capacity as manager and trustee of Black Diamond Global Equity Fund (TSX: BDEQ), Black Diamond Impact Core Equity Fund (TSX: BDIC) and Black Diamond Global Enhanced Income Fund (collectively, the “Funds” and each, a “Fund”), announced today that it will terminate each Fund and will redeem all of the issued and outstanding Class A units, Class F units and Class I units of each Fund, the ETF units of Black Diamond Global Equity Fund and Black Diamond Impact Core Equity Fund and the Class TA3 units and Class TF3 units of Black Diamond Global Equity Fund (collectively, the “Units”), all in accordance with applicable securities law and the terms of the Funds’ amended and restated declaration of trust. It is anticipated that the terminations will occur on or about February 19, 2024 (the “Termination Date”). It is also anticipated that the ETF units of Black Diamond Global Equity Fund and Black Diamond Impact Core Equity Fund will be voluntarily delisted from the Toronto Stock Exchange (the “TSX”) on or about February 14, 2024 at the close (the “Delisting Date”). Black Diamond Asset Management Inc., located in Toronto, Ontario, is the sub-advisor of each Fund.
The decision to close the Funds by Purpose was driven primarily by the decreasing asset size of each Fund. Given such decline, it is difficult to efficiently manage each Fund in accordance with its investment objective and each Fund is therefore no longer economically viable or practical to continue. As a result, the terminations, in the view of Purpose, are in the best interests of unitholders.
Effective as of the market close on the date hereof, Units of each Fund will no longer be available for purchase, including any purchases made through a pre-authorized purchase plan. Holders of ETF units of Black Diamond Global Equity Fund and Black Diamond Impact Core Equity Fund may continue to trade such Units on the TSX until the Delisting Date.
The redemption price payable for the Units will be an amount equal to the net asset value per unit of the applicable class of the applicable Fund on the Termination Date and will be payable to unitholders after the Termination Date on or about February 22, 2024.
As stated above, the effective date of termination of each Fund is expected to be on or about February 19, 2024. If you still hold a position in any of the Funds at 4:00 pm EST on the Termination Date, your position in the applicable Fund will be liquidated, with the proceeds either deposited into your account or a cheque mailed directly to you or to your dealer, nominee or intermediary, depending on your account registration. If you hold Units, there may also be tax implications to any disposition of your holdings. We strongly urge unitholders to contact their financial advisors to discuss the financial and tax implications associated with a redemption of their Units and the terminations.
About Purpose Investments
Purpose Investments is an asset management company with more than $18 billion under management. Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.
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Purpose Investments Inc. (“Purpose”) is the investment fund manager and portfolio manager for each Fund. Black Diamond Asset Management Inc. (“Black Diamond”) has been retained by Purpose to act as sub-advisor of each Fund. Purpose is responsible for all fees paid to Black Diamond for its services. Purpose maintains ultimate authority and responsibility for the management of the funds in accordance with their stated investment objectives as outlined in their respective prospectuses.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. The prospectus contains important detailed information about the investment fund. Please read the prospectus before investing. There is no assurance that any fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.