Purpose Investments Inc. (“Purpose”) announced today that it will terminate Investment Grade Managed Duration Income Fund (NEO Ticker: PFU.UN) and US Banks Income & Growth Fund (NEO Ticker: PUB.UN) (together, the “Funds”) and will redeem all of the issued and outstanding Class T Units (the “Units”) of each Fund in accordance with the terms of each Fund’s amended and restated declaration of trust. It is anticipated that each termination will occur on or about January 31, 2022 (each a “Termination Date”). Purpose is the trustee and manager of each Fund.
The decision to close the Funds was driven primarily by the Funds’ relatively low assets under management and the costs associated with maintaining funds of this size. Such factors have made it difficult to efficiently manage the Funds in accordance with their intended investment objectives. As a result, each termination, in the view of Purpose, is in the best interests of unitholders.
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 on or before February 3, 2022.
It is anticipated that the Class T units of each Fund will be voluntarily delisted from the NEO Exchange on or about January 27, 2022 at the close.
As stated above, the effective date of termination of the Funds is expected to be on or about January 31, 2022. If you still hold a position in a Fund at 4:00 pm EST on the Termination Date, your position in such 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 applicable termination.
About Purpose Investments
Purpose Investments is an asset management company with more than $14 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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Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. Investment funds are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer. There can be no assurance that the full amount of your investment in a fund will be returned to you. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.