Investment Grade Managed Duration Income Fund Announces Exchange Ratios for Exchange Option

TORONTO, Aug. 18, 2015 /CNW/ - Purpose Investments Inc., on behalf of the Investment Grade Managed Duration Income Fund (the "Fund"), is pleased to announce the exchange ratios for the exchange offer by the Fund (the "Exchange Option") being made under the final prospectus of the Fund dated July 30, 2015.

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.

The initial target distribution yield for the fund is 5.0% per annum based on the original subscription price (or $0.0417 per unit per month or $0.50 per unit per annum).

The number of units issuable for each class of security of an Exchange Eligible Issuer (as listed below) (the "Exchange Ratio") has been determined by dividing the weighted average trading price of such security during the period of five consecutive trading days ending on August 18, 2015 (the "Pricing Period"), as adjusted to reflect distributions declared by any Exchange Eligible Issuer that will not be received by the Fund, by $10.00. The Exchange Ratio for any such securities that do not trade in Canadian dollars have been determined by converting the weighted average trading price on the applicable exchange of such securities into Canadian dollars based on the Bank of Canada noon rate of exchange on the last day of the Pricing Period. Holders of securities of Exchange Eligible Issuers who deposited such securities pursuant to the Exchange Option will continue to be holders of record up to but not including the date of the closing of the offering of units and will be entitled to receive distributions in respect of such securities of Exchange Eligible Issuers that are declared up to but not including such date. Each Exchange Ratio has been rounded down to five decimal places.

The table below sets out the Exchange Eligible Issuers, the securities of which may be accepted by the Fund pursuant to the Exchange Option, including the name of the Exchange Eligible Issuer, its ticker symbol, its CUSIP number, its ISIN, its volume weighted average trading price during the Pricing Period and the Exchange Ratio.

NAME

TICKER SYMBOL

CUSIP

ISIN

VWAP ($)

EXCHANGE RATIO

AltaGas Ltd

ALA PRA

021361209

CA0213612090

16.5791

1.65791

Artis Real Estate Investment Trust

AX PRE

04315L709

CA04315L7097

15.3642

1.53642

Artis Real Estate Investment Trust

AX PRA

04315L303

CA04315L3039

17.6858

1.76858

Bank of Montreal

BMO PRW

063679880

CA0636798807

21.8789

2.18789

Bank of Montreal

BMO PRS

063679401

CA0636794012

22.6751

2.26751

Bank of Montreal

BMO PRT

063679609

CA0636796090

22.4687

2.24687

Bank of Nova Scotia/The

BNS PRZ

064149610

CA0641496108

22.4256

2.24256

Bank of Nova Scotia/The

BNS PRM

064149776

CA0641497767

25.1884

2.51884

Bank of Nova Scotia/The

BNS PRY

064149636

CA0641496363

22.3165

2.23165

BCE Inc

BCE PRK

05534B679

CA05534B6796

14.9271

1.49271

BCE Inc

BCE PRB

05534B695

CA05534B6952

15.5248

1.55248

BCE Inc

BCE PRQ

05534B596

CA05534B5962

22.6960

2.26960

BCE Inc

BCE PRM

05534B646

CA05534B6465

15.6393

1.56393

BCE Inc

BCE PRC

05534B786

CA05534B7869

15.8398

1.58398

Bombardier Inc

BBD PRB

097751507

CA0977515075

4.4895

0.44895

Bombardier Inc

BBD PRC

097751705

CA0977517055

8.7061

0.87061

Brookfield Asset Management Inc

BAM PRX

112585690

CA1125856908

16.1514

1.61514

Brookfield Asset Management Inc

BAM PFA

112585641

CA1125856411

22.0071

2.20071

Brookfield Asset Management Inc

BAM PFE

112585559

CA1125855595

21.7208

2.17208

Brookfield Asset Management Inc

BAM PRR

112585740

CA1125857401

17.5889

1.75889

Brookfield Asset Management Inc

BAM PFD

112585567

CA1125855678

21.4301

2.14301

Brookfield Office Properties

BPO PRR

112900782

CA1129007821

19.5173

1.95173

Brookfield Office Properties

BPO PRP

112900816

CA1129008167

18.3689

1.83689

Brookfield Renewable Power Preferred Equity

BRF PRE

11283Q602

CA11283Q6022

20.3272

2.03272

Canadian Imperial Bank of Commerce/Canada

CM PRO

136069440

CA1360694402

22.7761

2.27761

Canadian Imperial Bank of Commerce/Canada

CM PRP

136069424

CA1360694246

21.8269

2.18269

Canadian Imperial Bank of Commerce/Canada

CM PRQ

136069390

CA1360693909

24.0622

2.40622

Canadian Utilities Ltd

CU PRC

136717691

CA1367176916

23.1267

2.31267

Canadian Utilities Ltd

CU PRD

136717675

CA1367176759

22.5153

2.25153

Canadian Western Bank

CWB PRB

136765500

CA1367655000

19.9092

1.99092

Dundee Corp

DC PRD

264901802

CA2649018025

15.7925

1.57925

Emera Inc

EMA PRF

290876804

CA2908768047

21.5667

2.15667

Emera Inc

EMA PRC

290876507

CA2908765076

20.0286

2.00286

Enbridge Inc

ENB PRN

29250N774

CA29250N7743

16.8424

1.68424

Enbridge Inc

ENB PRY

29250N683

CA29250N6836

16.6221

1.66221

Enbridge Inc

ENB PFC

29250N592

CA29250N5929

17.8870

1.78870

Enbridge Inc

ENB PRB

29250N709

CA29250N7099

15.3034

1.53034

Enbridge Inc

ENB PRF

29250N865

CA29250N8659

16.1166

1.61166

Enbridge Inc

ENB PRD

29250N881

CA29250N8816

15.6282

1.56282

Enbridge Inc

ENB PRJ

29250N642

CA29250N6422

17.3298

1.73298

Enbridge Inc

ENB PRP

29250N758

CA29250N7586

16.4459

1.64459

Enbridge Inc

ENB PRH

29250N840

CA29250N8402

15.1518

1.51518

Enbridge Inc

ENB PFG

29250N550

CA29250N5507

18.1093

1.81093

Enbridge Inc

ENB PFE

29250N576

CA29250N5762

17.9717

1.79717

Fairfax Financial Holdings Ltd

FFH PRM

303901797

CA3039017973

21.8153

2.18153

Fairfax Financial Holdings Ltd

FFH PRC

303901508

CA3039015084

20.0218

2.00218

First National Financial Corp

FN PRA

33564P202

CA33564P2026

12.0882

1.20882

Fortis Inc/Canada

FTS PRH

349553826

CA3495538264

16.3110

1.63110

Fortis Inc/Canada

FTS PRI

349553818

CA3495538181

15.6050

1.56050

Fortis Inc/Canada

FTS PRG

349553834

CA3495538348

19.8011

1.98011

GMP Capital Inc

GMP PRB

380134205

CA3801342054

11.5487

1.15487

Great-West Lifeco Inc

GWO PRI

39138C866

CA39138C8667

22.2346

2.22346

Husky Energy Inc

HSE PRG

448055806

CA4480558069

22.8927

2.28927

Husky Energy Inc

HSE PRC

448055400

CA4480554001

22.2486

2.22486

Industrial Alliance Insurance & Financial Services

IAG PRG

455871806

CA4558718066

24.5117

2.45117

Innergex Renewable Energy Inc

INE PRA

45790B500

CA45790B5009

13.4252

1.34252

Intact Financial Corp

IFC PRC

45823T601

CA45823T6016

21.6103

2.16103

Manulife Financial Corp

MFC PRC

56501R502

CA56501R5024

21.6392

2.16392

Manulife Financial Corp

MFC PRK

56501R742

CA56501R7426

21.3680

2.13680

Manulife Financial Corp

MFC PRF

56501R858

CA56501R8580

16.7858

1.67858

National Bank of Canada

NA PRW

633067285

CA6330672859

21.7896

2.17896

National Bank of Canada

NA PRS

633067319

CA6330673196

22.9494

2.29494

National Bank of Canada

NA PRQ

633067335

CA6330673352

24.9959

2.49959

Northland Power Inc

NPI PRA

666511308

CA6665113081

14.8458

1.48458

Northland Power Inc

NPI PRC

666511605

CA6665116050

18.0662

1.80662

Pembina Pipeline Corp

PPL PRI

706327806

CA7063278062

23.5523

2.35523

Pembina Pipeline Corp

PPL PRA

706327202

CA7063272024

16.9905

1.69905

Power Financial Corp

PWF PRT

73927C738

CA73927C7382

24.0505

2.40505

Power Financial Corp

PWF PRF

73927C886

CA73927C8869

24.3414

2.43414

Power Financial Corp

PWF PRP

73927C779

CA73927C7796

17.0687

1.70687

Royal Bank of Canada

RY PRZ

78012G411

CA78012G4117

22.5135

2.25135

Royal Bank of Canada

RY PRH

78012H567

CA78012H5675

22.5365

2.25365

Royal Bank of Canada

RY PRA

780085445

CA7800854456

25.0916

2.50916

Royal Bank of Canada

RY PRF

780102653

CA7801026534

25.0735

2.50735

Royal Bank of Canada

RY PRJ

78012Q112

CA78012Q1129

23.8163

2.38163

Royal Bank of Canada

RY PRI

78010A416

CA78010A4164

25.0482

2.50482

Royal Bank of Canada

RY PRG

780102554

CA7801025544

25.1530

2.51530

Royal Bank of Canada

RY PRM

78012T470

CA78012T4708

23.6445

2.36445

Sun Life Financial Inc

SLF PRB

866796303

CA8667963034

22.7190

2.27190

Sun Life Financial Inc

SLF PRI

866796832

CA8667968322

23.3463

2.33463

Sun Life Financial Inc

SLF PRG

866796881

CA8667968819

16.6445

1.66445

Sun Life Financial Inc

SLF PRH

866796865

CA8667968652

20.2065

2.02065

Toronto-Dominion Bank/The

TD PFC

891145658

CA8911456587

21.9145

2.19145

Toronto-Dominion Bank/The

TD PFB

891145674

CA8911456744

22.1234

2.21234

Toronto-Dominion Bank/The

TD PFD

891145633

CA8911456330

24.2372

2.42372

Toronto-Dominion Bank/The

TD PFE

891145617

CA8911456173

24.7138

2.47138

Toronto-Dominion Bank/The

TD PRY

891145708

CA8911457080

25.0899

2.50899

TransAlta Corp

TA PRJ

89346D677

CA89346D6770

14.3959

1.43959

TransCanada Corp

TRP PRB

89353D503

CA89353D5038

13.3426

1.33426

TransCanada Corp

TRP PRD

89353D883

CA89353D8834

19.8023

1.98023

TransCanada Corp

TRP PRC

89353D701

CA89353D7018

13.8793

1.38793

TransCanada Corp

TRP PRH

89353D602

CA89353D6028

12.9252

1.29252

TransCanada Corp

TRP PRA

89353D404

CA89353D4049

17.4116

1.74116

Veresen Inc

VSN PRC

92340R502

CA92340R5024

20.5851

2.05851

iShares S&P/TSX Canadian Preferred Share Index ETF

CPD

46431G205

CA46431G2053

13.7749

1.37749

BMO S&P/TSX Laddered Preferred Share Index ETF

ZPR

05575R104

CA05575R1047

11.1735

1.11735

The syndicate of agents is being led by National Bank Financial Inc. and includes 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. and Rothenberg Capital Management Inc.

This offering is made by prospectus. The prospectus contains important information about the securities being offered. Copies of the prospectus may be obtained from your IIROC registered financial advisor using the contact information for such advisor. Investors should read the prospectus before making an investment decision.

SOURCE Investment Grade Managed Duration Income Fund

For further information: please visit our website at www.purposeinvest.com or contact Dan Rubin, Vice President, Marketing at (416) 583-3853 or toll-free at Info@purposeinvest.com

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Investment Grade Managed Duration Income Fund

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