Redwood to Launch Series of Active Exchange Traded Funds on NEO
January 12, 2017
Redwood Asset Management (“Redwood”), a wholly owned subsidiary of Purpose Investments Inc. (“Purpose”), and Aequitas NEO Exchange Inc. (“NEO Exchange” or “NEO”) are pleased to announce that Redwood plans to launch four exchange traded funds, consisting of six ETF listings, on NEO. This is the first series of Redwood ETFs to be launched on the public markets, and will provide investors with a suite of ETF solutions managed by best-in-class specialist investment boutiques.
“Offering ETF series of these successful, actively managed mandates has always been a part of our long-term plans for growth, and Purpose has provided the depth of resources and expertise to further accomplish this goal,” said Peter Shippen, President, Redwood Asset Management. “There has been a significant evolution in the investment fund industry, and ETFs are now an integral part of the portfolio strategy of many Canadian investors. This launch represents not only a necessary extension of distribution for Redwood’s unique strategies, but also an expansion of access and choice for investors seeking truly active ETFs.”
The following Redwood ETFs have been granted conditional approval by NEO and will be listed on the NEO Exchange.
- Redwood Floating Rate Preferred Fund (RPS)
- Redwood U.S. Preferred Share Fund (RPU, RPU.B and RPU.U)
- Redwood Emerging Markets Dividend Fund (REM)
- Redwood Unconstrained Bond Fund (RUB)
“We are impressed with NEO’s service, support, and depth of knowledge,” said Mr. Shippen. “NEO’s steadfast focus on bringing competition and alternative solutions to the Canadian ETF landscape was a key consideration in solidifying the partnership. We look forward to working with NEO.”
“At NEO, we are committed to doing things differently to build a level playing field for investors and to ensure public companies and investment products have the liquidity they need to succeed. We are not constrained by conventional wisdom and have found a forward-looking partner in Redwood who also believes in unconstrained thinking to deliver innovative investment mandates. We are very excited to work with Redwood, and the entire team at Purpose Investments, to make Canadian markets better for all investors,” stated Jos Schmitt, President and CEO, NEO Exchange. “The commitment from Redwood to list with us is yet another vote of confidence in our innovative solutions that try to do the right thing for the Canadian capital markets.”