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
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
Aston Hill is a wholly-owned subsidiary of Aston Hill Financial Inc.
(TSX: AHF). Aston Hill Financial Inc. is a diversified asset management
company with a suite of retail mutual funds, closed end funds, private
equity funds, hedge funds and segregated institutional funds. Aston
Hill Financial Inc. has offices in Calgary, Toronto and Halifax.
This press release is for information purposes only and does not
constitute an offer to sell or a solicitation to buy the securities
referred to herein. This press release is not for dissemination in the
United States or for distribution to U.S. news wire services.
This news release contains certain "forward-looking statements". The
statements that are not historical facts contained in this press
release are forward-looking statements that involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by
the forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance
on forward-looking statements.
SOURCE: Aston Hill Asset Management Inc.
For further information:
Peter Shippen, President
Redwood Asset Management Inc.
Tel: (416) 304-6811
Fax: (416) 368-1608
Michael J. Killeen, President
Aston Hill Asset Management Inc.
Tel: (416) 583-2300