TORONTO, Dec. 29, 2022 (GLOBE NEWSWIRE) -- Purpose Investments Inc. ("Purpose") previously announced on November 22, 2022, its proposal to merge Purpose Money Market Fund ("PMT") into Purpose High Interest Savings ETF (to be renamed Purpose High Interest Savings Fund) ("PSA") (the "Merger") on or about January 27, 2023 (the "Effective Date"). As a result of the Merger, holders of Class A units and Class F units of Purpose Money Market Fund will become holders of Class A units and Class F units, respectively, of the Purpose High Interest Savings ETF on the Effective Date. The current holders of ETF units of the Purpose High Interest Savings ETF will not be affected in any way and will continue to hold ETF units of that fund.
The net asset value of the newly offered Class A units and Class F units of PSA will be set (and is expected to remain fixed) at $10.00 per unit from and after the Effective Date. Class A units and Class F units of PMT currently trade at above $50.00 and will therefore receive additional units of PSA upon merger. To achieve a fixed $10.00 net asset value, interest will be accrued and be reflected in the investor's account through the record keeper and will be paid out on the distribution payment date. If the unitholder redeems his or her units prior to the distribution payment date, the accrued distribution will be paid out prior to the settlement of the redemption. Additionally, immediately prior to the Effective Date of the Merger, PMT will declare a distribution on its Class A units and Class F units, which will be payable in cash or in units, based on the election of the holder. Further, as the Merger will be implemented on a tax-deferred basis, the cost base per unit of the new Class A units and Class F units of PSA to such holders is expected to be higher than $10.00 fixed price of the PSA units such holder will receive on the Merger.
Purpose today also announced that effective on or about January 27, 2023, the outstanding Class A units, Class F units, and Class I units (the "Units") and Series A shares, Series F shares, and Series XF shares (the "Shares") of Purpose US Cash Fund and Purpose Premium Money Market Fund, respectively, will be split such that the number of Units of Purpose US Cash Fund and Shares of Purpose Premium Money Market Fund received after the split will reflect a ratio of the net asset value of such Units and Shares before the sub-division divided by $10.00.
Following the split, the net asset value of the Units of Purpose US Cash Fund and the Shares of Purpose Premium Money Market Fund is expected to be fixed at $10.00. To achieve a fixed $10.00 net asset value, interest will be accrued and be reflected in the investor's account through the record keeper and will be paid out on the distribution payment date. If the unitholder redeems his or her units prior to the distribution payment date, the accrued distribution will be paid out prior to the settlement of the redemption. As the cost base will remain unchanged after the split, the cost base is expected to be higher than the $10.00 fixed price of the units following the split. The current holders of ETF units of the Purpose US Cash Fund will not be affected in any way and will continue to hold the same number of ETF units of the fund.
About Purpose Investments Inc.
Purpose Investments is an asset management company with more than $14 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation, offering 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-driven financial services platform that is reshaping the industry by connecting and creating opportunities across asset management, wealth management and small business financial services.
For further information please contact:
Keera Hart
Keera.Hart@kaiserpartners.com
905-580-1257
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus and other disclosure documents before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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.
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