Purpose Investments Inc. (“Purpose” or the “Manager”) announced today a proposal to change the investment objective of Purpose Floating Rate Income Fund (the “Fund”). Purpose is the trustee, manager and portfolio advisor of the Fund. Purpose has retained Neuberger Berman Investment Advisers LLC (“Neuberger”) to act as sub-advisor of the Fund. Neuberger will remain as sub-advisor of the Fund if the objective change is approved.
The proposed change of investment objective is as follows:
Current Investment Objective
The Fund’s investment objectives are to generate current income and preserve capital by investing primarily in floating-rate debt securities, short-term debt securities, high-yield debt securities and asset-backed and mortgage-backed securities.
Proposed New Investment Objective
The Fund’s investment objectives are to maximize total return from current income and long-term capital appreciation by investing in a diversified mix of global fixed-rate and floating-rate debt securities, including high-income securities.
In accordance with applicable legal requirements, unitholders of the Fund will be required to approve the objective change. Unitholders will receive a Notice of Meeting and a Management Information Circular (the “Meeting Materials”) in accordance with applicable securities laws. The Meeting Materials will also be available on SEDAR at www.sedar.com. The required unitholder approval will be sought at a special meeting to be held on December 10, 2021, for unitholders of the Fund of record as of October 27, 2021. If approved, the change will be effective after the close of business on or about December 10, 2021 (the “Effective Date”).
The investment objective change is being proposed as Purpose believes the new active strategy will maximize total return from current income and long-term capital appreciation by investing in a diversified mix of global fixed-rate and floating-rate debt securities.
The proposed change is also expected to maintain the Fund’s risk profile by employing a relative value, credit-focused active strategy.
If the investment objective is approved, after the close of business on the Effective Date:
- The name of the Fund will change to “Purpose Global Flexible Credit Fund” and
- The Fund type will be changed from “floating rate bond fund” to “global fixed income.”
Certain other changes will also occur, including a change in investment strategies. Full details of the proposal and the resultant, expected, changes will be disclosed in the Meeting Materials.
About Purpose Investments Inc.
Purpose Investments Inc. is an asset management company with more than $12 billion under management. Purpose 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 Financial, an independent technology-driven financial services company.
For further information please contact:
Keera Hart
Keera.Hart@kaiserpartners.com
905-580-1257
Forward-Looking Information
Purpose cautions the reader not to place undue reliance upon any such forward-looking statements contained herein, which speak only as of the date they are made. Generally, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “on pace”, “anticipates”, or “does not anticipate”, “believes”, and similar expressions or state that certain actions, events or results “may”, “could”, “would”, “should”, “might”, or “will” be taken, occur or be achieved.
Forward-looking statements are based on information available to management at the time they are made, management’s current plans, estimates, assumptions, judgments and expectations. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Purpose to be materially different from those expressed or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to: general business, economic, competitive, geopolitical, technological and social uncertainties. Although the forward-looking information contained in this press release is based on assumptions that Purpose believes to be reasonable at the date such statements are made, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Purpose does not undertake to update or revise any forward-looking information, except in accordance with applicable securities laws.
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. 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.
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 US news wire services.