Redwood Asset Management Inc. and Aston Hill Asset Management Inc. Announce a Proposed Change of Manager of Redwood Income Strategies Class and Related Fund Merger
TORONTO, Feb. 4, 2014 /CNW/ - Redwood Asset Management Inc. ("Redwood") and Aston Hill Asset Management Inc. ("Aston Hill") are pleased to announce that they have entered into an agreement dated February 4, 2014 (the "Agreement") pursuant to which the manager of Redwood Income Strategies Class (the "Redwood Fund"), a class of mutual fund shares of Ark Mutual Funds Ltd. ("Ark Ltd."), is proposed to be changed from Redwood to Aston Hill (the "Change of Manager"). The Change of Manager is subject to the receipt of all necessary securityholder and regulatory approvals, as well as approval of the merger described below.
As part of the transaction, and subject also to all necessary securityholder and regulatory approvals, as well as completion of the Change of Manager, the Redwood Fund will be merged with Aston Hill Growth & Income Fund (the "Continuing Fund" and together with the Redwood Fund, the "Funds"), with the result that securityholders of the Redwood Fund will become securityholders of the Continuing Fund (the "Merger" and together with the Change of Manager, the "Transaction"). The Change of Manager will not proceed unless the Merger is approved.
The proposed Transaction will be subject to approval by the securityholders of the Redwood Fund at a special meeting anticipated to be held on or about March 28, 2014 (the "Special Meeting"). Prior to the Special Meeting, a notice of special meeting, management information circular and form of proxy will be mailed to securityholders. If approved, the proposed Transaction is expected to become effective no later than April 15, 2014 (the "Effective Date"). The independent review committee of the Redwood Fund has given its positive recommendation for the proposed Transaction.
It is anticipated that the Merger will be beneficial to the Funds for a number of reasons, including by increasing the asset base of the Continuing Fund, thereby potentially reducing long-term costs. In addition, the management fees charged to the Continuing Fund are lower than those currently charged to the Redwood Fund. Investors in the Redwood Fund will have the right to redeem their securities up to the close of business on the day before the effective date of the Merger. Following the Merger, all optional plans, including pre-authorized contribution plans, which were established with respect to the Redwood Fund, will be re-established in comparable plans with respect to the Continuing Fund unless investors advise otherwise
Aston Hill is a wholly-owned subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, private equity funds, hedge funds and segregated institutional funds. Aston Hill Financial Inc. has offices in Calgary, Toronto and Halifax.
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.
This news release contains certain "forward-looking statements". The statements that are not historical facts contained in this press release are forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Aston Hill Asset Management Inc.