Redwood Asset Management Expands Income Solutions with Launch of the Redwood U.S. Preferred Share Fund and ETF units of the Redwood Floating Rate Preferred Fund
March 15, 2017
Redwood Asset Management Inc. (“Redwood”) is pleased to announce the listing of two income-generating preferred share funds, the Redwood U.S. Preferred Share Fund (NEO:RPU and RPU.B) and the Redwood Floating Rate Preferred Fund (NEO:RPS). Redwood has completed the initial public offering of ETF units of the Funds. The ETF units of the Redwood U.S. Preferred Share Fund and the Redwood Floating Rate Preferred Fund will commence trading on the NEO Stock Exchange today under the ticker symbols RPU (currency hedged), RPU.B (non-currency hedged) and RPS, respectively.
“Today’s launch of these two Funds on NEO represents an important expansion of Redwood’s product capabilities, and is the first of a series of ETFs we will be bringing to market” said Peter Shippen, President and Chief Executive Officer of Redwood Asset Management. “The launch of these funds represents a necessary extension of distribution for Redwood’s unique strategies, and broadens access and choice for investors seeking truly active ETFs.”
Redwood U.S. Preferred Share Fund
The Redwood U.S. Preferred Share Fund, managed by a Chicago-based Nuveen Asset Management, employs a fundamental, active approach that combines bottom-up credit research and top-down structural analysis to invest in U.S. institutional preferred securities that currently offer some of the most attractive yields in the investment-grade universe. The Fund provides access to preferred shares across the US$1,000-par institutional market, using a fundamental approach to identify high-quality securities and opportunistically capture structural inefficiencies caused by liquidity and technical factors. The Fund offers both currency hedged (RPU) and non-currency hedged (RPU.B) units.
Redwood Floating Rate Preferred Fund
The Redwood Floating Rate Preferred Fund employs top-down macro analysis and bottom-up stock selection as well as active risk mitigation to invest in Canadian preferred shares issued predominantly by investment-grade issuers. The Fund, owns a high-quality portfolio of Canadian preferred shares that provides an attractive source of tax-efficient dividends, has had strong performance relative to the S&P/TSX Preferred Share Index over that past several years.