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
February 4, 2014
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