TORONTO, ONTARIO–(Marketwired – Sept. 13, 2017) – LOGiQ Asset Management Inc. (TSX:LGQ) (“LOGiQ” or the “Company“) and Purpose Investments Inc. (“Purpose“) announced that they have entered into a purchase and sale agreement (the “Purchase and Sale Agreement“) providing for the acquisition by Purpose of substantially all of the retail asset management agreements owned by LOGiQ and its affiliates (the “Transaction“). Under the terms of the Purchase and Sale Agreement, the purchase price for the retail asset management contracts to be acquired by Purpose will be $32.9 million, subject to adjustment based on the assets under management of the funds related to the acquired contracts at closing. Redwood Asset Management Inc. (“Redwood“), a wholly-owned subsidiary of Purpose, will act as manager and/or trustee and/or portfolio manager in respect of the LOGiQ funds set out below (the “LOGiQ Funds“) following closing of the Transaction.
The closing of the Transaction, which is expected to occur by the end of December, is subject to a number of conditions precedent including, among other things, all necessary approvals by the holders of securities of the LOGiQ Funds, approval by the holders of the LOGiQ common shares and the 7.00% senior unsecured convertible debentures due June 30, 2021, all required securities regulatory and stock exchange approvals, and satisfaction of other customary closing conditions.
Upon completion of the Transaction and subject to receipt of all necessary approvals, Redwood will become the manager of each of the LOGiQ Funds and all funds will undergo a name change to continue under the Redwood banner. Certain of the LOGiQ Funds will be merged prior to completion of the Transaction, into a mutual fund managed, or to be managed, by Redwood. Certain of the LOGiQ Funds will be converted from closed-end funds into open-end mutual funds. In addition, certain funds will undergo a change in investment objectives.
Below is a summary of the proposed material changes to each of the LOGiQ Funds:
| Mutual Funds | Proposed material changes | ||
| LOGiQ Global Balanced Income Class | – | Change of manager and portfolio manager | |
| LOGiQ Balanced Monthly Income Class | – | Change of manager | |
| LOGiQ Global Opportunities Class | – | Change of manager | |
| LOGiQ Growth Class | – – |
Change of manager and portfolio manager Merger into Redwood Special Opportunities Fund (formerly, LOGiQ Special Opportunities Class) |
|
| LOGiQ MLP and Infrastructure Income Class | – | Change of manager | |
| LOGiQ Money Market Class | – | Change of manager | |
| LOGiQ Resource Growth and Income Class | – | Change of manager and portfolio manager | |
| LOGiQ Special Opportunities Class | – | Change of manager and portfolio manager | |
| LOGiQ Tactical Bond Class | – | Change of manager and portfolio manager | |
| LOGiQ Tactical Equity Class | – | Change of manager and portfolio manager | |
| LOGiQ Growth Fund | – | Change of manager and portfolio manager | |
| LOGiQ Tactical Bond Fund | – | Change of manager, trustee and portfolio manager | |
| LOGiQ Global Resource Fund | – | Change of manager, trustee and portfolio manager | |
| LOGiQ High Income Fund | – | Change of manager, trustee and portfolio manager | |
| LOGiQ Millennium Fund | – – |
Change of manager, trustee and portfolio manager Merger into Redwood High Income Fund (formerly, LOGiQ High Income Fund) |
|
| LOGiQ Strategic Yield Fund | – | Change of manager, trustee and portfolio manager | |
| LOGiQ Total Return Fund | – | Change of manager and trustee |
| Closed-End Funds | Proposed material changes | ||
| Australian Banc Income Fund | – – – |
Change of manager Change investment objective to global financials portfolio Conversion to an open-end fund |
|
| Canadian 50 Advantaged Preferred Share Fund | – – |
Change of manager Merger into Redwood Canadian Preferred Share Fund |
|
| Global Capital Securities Trust | – – |
Change of manager Conversion to an open-end fund |
|
| LOGiQ Advantage Bond Fund | – – |
Change of manager Conversion to an open-end fund |
|
| LOGiQ Advantage Oil & Gas Income Fund | – – |
Change of manager Conversion to an open-end fund |
|
| LOGiQ Advantage VIP Income Fund | – – |
Change of manager Conversion to an open-end fund |
|
| LOGiQ AVIP Trust | – | Change of manager and trustee | |
| LOGiQ MBB Trust | – | Change of manager and trustee | |
| LOGiQ O&G Trust | – | Change of manager and trustee | |
| LOGiQ VIP Income Fund | – – |
Change of manager and trustee Conversion to an open-end fund |
|
| Low Volatility Canadian Equities Income Fund | – – |
Change of manager Conversion to an open-end fund |
|
| Macquarie Global Infrastructure Income Fund | – – |
Change of manager Conversion to an open-end fund |
|
| Voya Floating Rate Senior Loan Fund | – – – |
Change of manager and trustee Expand investment objective to add other corporate fixed income securities in addition to senior loans Conversion to an open-end fund |
|
| Voya Diversified Floating Rate Senior Loan Fund | – – – |
Change of manager Expand investment objective to add other corporate fixed income securities in addition to senior loans Conversion to an open-end fund |
|
| LOGiQ Credit Opportunities Fund | – – |
Change of manager and trustee Provide for daily redemptions |
|
| LOGIQ Select Equity Fund | – – |
Change of manager Provide for daily redemptions |
Holders of securities of the relevant LOGiQ Funds will be asked to approve, as applicable, the change of manager (and in certain cases the change of trustee and/or portfolio manager), the mergers, the investment objectives change, and the conversions at special meetings. The special meetings are expected to be called and held on or about November 3, 2017. Details about the changes will be contained in the meeting materials to be mailed to holders of securities of the LOGiQ Funds, which will be made available under each LOGiQ Fund’s profile at www.sedar.com.
The Company will refer the Transaction to the applicable Independent Review Committee (the “IRC“) of the LOGiQ Funds, which acts in an advisory capacity representing the interests of the funds and securityholders with respect to conflict of interest matters. The IRC has been asked to review the proposals and determine that, if implemented, each proposal would achieve a fair and reasonable result for the applicable LOGiQ Fund.
LOGiQ (logiqasset.com) is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and pooled funds, and also provides segregated institutional managed accounts and institutional advisory sales. Excluding the retail assets under management that are the subject of the Transaction, LOGiQ has assets under management or advisement, and institutional advisory sales-related fee earning arrangements that are not managed or advised, totaling approximately $3.5 billion as at August 11, 2017.
Purpose Investments Inc. 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 $3.4 billion in assets under management and currently offers 35 exchange traded funds and mutual funds and 7 closed-end funds across multiple asset classes and both traditional and alternative investment strategies. Redwood Asset Management Inc., a wholly owned subsidiary of Purpose, is focused on delivering unique active-investment solutions managed by boutique global investment managers to Canadian investors.
The TSX has neither approved nor disapproved the information contained herein.
Forward-Looking Statements: This news release contains certain “forward-looking statements” within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.
Joe Canavan
President & Chief Executive Officer
(416) 583-2300
LOGiQ Asset Management Inc.
Mary Anne Palangio
Chief Financial Officer
(416) 583-2300
Purpose Investments Inc.
Som Seif
President & Chief Executive Officer
(416) 583-3850
www.purposeinvest.com
Redwood Asset Management
Peter Shippen
President & Chief Executive Officer
(416) 304-6811
www.redwoodasset.com
