TORONTO, April 05, 2023 (GLOBE NEWSWIRE) — Purpose Investments Inc . (“Purpose“), in a joint decision with Black Diamond Asset Management (“Black Diamond“), announced today that it will terminate the Black Diamond Distressed Opportunities Fund (TSX Ticker: BDOP) (“fund”) and will repurchase all issued and outstanding ETF Units, Class A Units, Class F Units and Class I Units (collectively “Units”) of the Fund in accordance with applicable securities law and the terms of the Fund’s Amended and Restated Declaration of Trust. Termination is expected to occur on or about June 12, 2023 (“Termination date“). It is also expected that the Fund’s ETF units will be voluntarily delisted from the Toronto Stock Exchange (“TSX“) on or about June 7, 2023, at the end of (“Date of removal“). The purpose is the trustee and manager of the fund.
The decision to close the fund was a mutual decision between Black Diamond and Purpose, driven primarily by Black Diamond’s conclusions regarding the fund’s relatively low assets under management and the costs associated with maintaining a fund of this size. Such factors have made it difficult to effectively manage the Fund in accordance with the intended investment objectives. As a result, the termination, according to Purpose, is in the best interests of the Unitholders.
Effective as of the close of the market on the date specified herein, Units of the Fund will no longer be available for purchase, including any purchases made through a pre-approved purchase plan. Holders of ETF Units of the Fund may continue to trade such Units on the TSX Unit on the Exclusion Date.
The redemption price payable for the Units will be an amount equal to the net asset value per Unit of the applicable class on the Termination Date and will be payable to Unitholders on or before June 12, 2023.
As stated above, the effective termination date of the Fund is expected to be on or about June 12, 2023. If you still hold a position in the Fund at 4:00 PM EST on the Termination Date, your position in the Fund will be liquidated, with the proceeds either deposited into your account or sent by check directly to you or your dealer, nominee or intermediary, depending on your account registration. If you own Shares, there may also be tax consequences to any disposal of your holdings. Unitholders are urged to contact their financial advisors to discuss the financial and tax consequences associated with the redemption of their Units and the termination.
About targeted investments
Purpose Investments is an asset management company with over $15 billion under management. Purpose Investments has a relentless 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-focused financial services company.
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Purpose Investments Inc. (“Purpose”) is the investment fund manager and portfolio manager of the Black Diamond Distressed Opportunities Fund. Black Diamond Asset Management Inc. (“Black Diamond”) has been retained by Purpose as a consultant to provide wholesale distribution services and advisory and research services in support of the Fund’s investment mandates. Purpose is responsible for all fees paid to Black Diamond for its services. Purpose maintains ultimate authority and responsibility for the management of the Funds in accordance with their stated investment objectives as set out in their respective prospectuses.
Commissions, trailing commissions, management fees and expenses can all be associated with investments in a mutual fund. The prospectus contains important detailed information about the investment fund. Please read the prospectus before investing. There is no guarantee that any fund will achieve its investment objective and its net asset value, yield and investment returns will vary from time to time depending on market conditions. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
This press release is for informational purposes only and does not constitute an offer to sell or an invitation to buy the securities referred to herein. This press release is not for distribution in the United States or for distribution to American news services.