Exchange Bulletin

Investment Grade Managed Duration Income Fund (PFU.UN) To Trade On Toronto Stock Exchange


August 20, 2015

Investment Grade Managed Duration Income Fund (the “Fund”) – An application has been granted for the original listing in the Industrial category of up to 20,000,000 class T units (“Class T Units”) of the Fund, of which up to 20,000,000 Class T Units will be issued and outstanding and/or up to 20,000,000 Class T Units will be reserved for issuance upon completion of an initial public offering (the “Offering”).

Listing of the Class T Units will become effective at 5:01 p.m. on Thursday, August 20, 2015, in anticipation of the offering closing on Friday, August 21, 2015. The Class T Units will be posted for trading at the opening on August 21, 2015.

The registration and transfer of Class T Units will be affected through the book-entry only system administered by CDS Clearing and Depository Services Inc. (“CDS”). Class T Units must be purchased, converted, transferred and surrendered for redemption through a CDS Participant. Unitholders will receive only a customer confirmation from the registered dealer which is a CDS Participant and from or through which the Class T Units are purchased.

Additional information on the Class T Units can be found in the Fund’s final prospectus dated July 30, 2015 (the “Prospectus”), which is available at www.SEDAR.com. Capitalized terms not otherwise defined are as defined in the Prospectus.

 

Stock Symbol: "PFU.UN" CUSIP: 46137E 20 7 Trading Currency: CDN$

 

Temporary Market Maker: National Bank Financial Inc.
Other Markets: None
Head Office Address: 130 Adelaide Street West, Suite 1700
P.O. Box 83
Toronto, Ontario
M5H 3P5
Head Office Telephone Number: (416) 583-3855
Email Address: info@purposeinvest.com
Website Address: www.purposeinvest.com
Manager: Purpose Investments Inc.
Investor Relations: Som Seif
Tel: (416) 583-3850
soms@purposeinvest.com

-or-

Scott Bartholomew
Tel: (416) 583-3857
scottb@purposeinvest.com
Chief Financial Officer: Scott Bartholomew
Corporate Secretary: Lara Misner
Incorporation: The Fund is a closed-end investment fund established as a trust under the laws of the Province of Ontario pursuant to a declaration of trust dated July 30, 2015.
Fiscal Year End: December 31
Nature of Business: The Fund’s investment objectives are to: (i) provide holders of Units with a stable stream of monthly distributions; (ii) preserve the net asset value per Unit; and (iii) reduce the risk of rising interest rates by managing portfolio duration, by investing primarily in U.S. and Canadian dollar denominated investment grade preferred securities.
Transfer Agent & Registrar: Equity Financial Trust Company at its principal office in Toronto.
Distributions: The Fund intends to provide Unitholders with monthly cash distributions. Such distributions will be payable to Unitholders of record on the last day of each month or such other date as the Fund may set from time to time and will be paid on or before the last business day of the first month following each such month.

The Fund will not have a fixed monthly distribution amount, but will at least annually determine and announce (commencing in June 2016) a target monthly distribution amount (the “Target Distribution Amount”) based upon prevailing market conditions and the estimate by the Manager of distributable cash flow for the period to which such Target Distribution Amount pertains. The initial Target Distribution Amount for the period ending May 31, 2016 is $0.0417 per Unit per month (corresponding to an annualized distribution of $0.50 per Unit per annum and representing an annualized yield of 5% per annum based on the original subscription price). The initial distribution is expected to be declared payable to Unitholders of record on September 30, 2015 and to be paid on or before the last business day of the following month.
Class A Units: In addition to the Class T Units, the Fund is offering Class A Units under the Prospectus. The Class A Units are intended for investors who expect to hold their Class A Units for at least thirty-two (32) months and the Class A Units will not be listed on a stock exchange.

A holder of Class A Units may convert Class A Units into Class T Units on a weekly basis in accordance with the Declaration of Trust and it is expected that liquidity for the Class A Units will be primarily obtained by means of conversion into Class T Units and the sale of those Class T Units. Class A Units may be converted in any week on the first Business Day of such week (each a “Conversion Date”) by delivering a notice and surrendering such Class A Units by 3:00 p.m. (Toronto time) at least five Business Days prior to the relevant Conversion Date.

Class A Units will be automatically converted into Class T Units on April 21, 2018 (the “Automatic Conversion Date”), with no Early Exchange Fee. Any conversion of Class A Units into Class T Units prior to the Automatic Conversion Date will be subject to an Early Exchange Fee per Class A Unit converted of up to 3.00% of the NAV per Class A Unit, declining over time.
Sponsor: Not applicable
Initial Public Offering: Pursuant to the terms of the Prospectus, a maximum of 20,000,000 Class T Units and/or Class A Units (unlisted) are being offered to the public by National Bank Financial Inc., CIBC World Markets Inc., Scotia Capital Inc., GMP Securities L.P., Canaccord Genuity Corp., Raymond James Ltd., Desjardins Securities Ltd., Dundee Securities Ltd., Global Securities Corporation, Mackie Research Capital Corporation, Manulife Securities Incorporated, PI Financial Corp. Rothenberg Capital Management Inc., as agents, at a price of $10.00 per Unit.