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Purpose Investments Inc. Announces Conversion of Purpose Floating Rate Income Fund Into an Open-End Fund


TORONTO, Aug. 07, 2018 (GLOBE NEWSWIRE) -- Purpose Investments Inc. ("Purpose") confirmed that the previously announced plan to convert Purpose Floating Rate Income Fund (TSX:FLOT) (the "Fund") from a closed-end fund to an exchange-traded mutual fund on August 7, 2018 will be completed as planned. As part of the conversion, the Fund's Class A units and Class U units will be renamed "ETF units" and "ETF non-currency hedged USD units", respectively, and the trading symbol for the Class A units will change from "FLOT.UN" to simply "FLOT". A new class of units designated as "ETF non-currency hedged CAD units" also will commence trading on the Toronto Stock Exchange under the symbol "FLOT.B", and other classes of mutual fund units will become available for purchase under the Fund's prospectus.

Existing unitholders of the Fund are not required to take any action in respect of the changes described above. As a result of the conversion, existing unitholders automatically will become holders of ETF units or ETF non-currency hedged USD units, as applicable.

The conversion should provide holders of FLOT.UN and FLOT.U with several benefits, including:

  • A lower management fee and a lower expected management expense ratio – Effective June 15, 2018, Purpose reduced the management fee on FLOT.UN and FLOT.U to 0.85% per annum from 1.25%.
  • Efficient trading and daily liquidity – As an exchange-traded fund is in continuous distribution, FLOT's and FLOT.U's ETF units are expected to trade efficiently and close to its Net Asset Value at all times and the units will be redeemable daily at NAV, thereby significantly increasing the liquidity for unitholders.
  • A leading manager of fixed-income solutions – On April 17, 2018, leading asset manager Neuberger Berman Investment Advisors LLC (NB) assumed management of the Purpose Floating Rate Income Fund portfolio. NB is a private, independent, employee-owned investment manager with over US$299 billion in assets under management, as at March 31, 2018, including US$130 billion managed across the fixed-income universe. The Fund will benefit from NB's breadth and depth of experience, resources and innovative investment solutions, which can be leveraged extensively in the ETF / mutual fund format.
  • No disposition for tax purposes – The conversion will not result in a disposition of units by holders of FLOT.UN and FLOT.U, and accordingly, any embedded gain will not be realized as a result of the conversion. This differs from the treatment that would occur on a redemption or termination of a fund, which would result in a disposition of the shares and the realization of any income for tax purposes.

About Purpose Investments Inc.

Purpose Investments is an asset management company with approximately $5.7 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 Financial, an independent technology-driven financial services company.

For further information please contact:

Nancy Turner
Purpose Investments Inc.
Tel: (877) 789-1517

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 U.S. news wire services.  Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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