TORONTO, Jan. 07, 2019 -- Ninepoint Partners LP (Ninepoint Partners) announced today that it proposes to merge (each a Merger and collectively, the Mergers) Ninepoint Short-Term Bond Class into Ninepoint Short-Term Bond Fund and Ninepoint Real Asset Class into Ninepoint Global Infrastructure Fund (each a Fund and collectively, the Funds). Each of Ninepoint Short-Term Bond Class and Ninepoint Real Asset Class (each a Terminating Fund and collectively, the Terminating Funds) will cease to be available for sale effective immediately. Following the Mergers, pre-authorized chequing plans established for purchases of securities of each Terminating Fund will be immediately transferred to the equivalent series of securities of the applicable continuing fund. Through the Mergers, holders of securities of each series of each of the Terminating Funds will receive securities of its respective continuing fund, determined on a dollar-for-dollar basis.
Ninepoint Partners also announced today that it proposes to change the investment objective (the Investment Objective Change) and investment strategies of Ninepoint Short-Term Bond Fund to permit the Fund to invest primarily in high interest savings accounts offered at Schedule 1 Canadian Banks. If the Investment Objective Change is approved by securityholders, the name of Ninepoint Short-Term Bond Fund will change (the Name Change) and the management fees payable will be reduced (the Management Fee Reduction) effective March 4, 2019. The management fee payable on Series A units will be reduced from 0.75% to 0.39% and the management fee payable on Series F units will be reduced from 0.50% to 0.14%. The management fee payable on Series I units, which is negotiated between Ninepoint Partners and each unitholder will be reduced from a maximum of 0.75% to a maximum of 0.39%.
The Independent Review Committee of each of the Funds has reviewed the potential conflict of interest matters related to the proposed Mergers and Investment Objective Change and has provided the Managers with a positive decision having determined that the proposed Mergers and Investment Objective Change, if implemented, will achieve a fair and reasonable result for each of the Funds.
Ninepoint Partners will seek the approval of the securityholders of each Terminating Fund and the applicable securities regulator in respect of the proposed Mergers and will seek approval of the securityholders of Ninepoint Short-Term Bond Fund in respect of the Investment Objective Change. Securityholder approval will be sought at separate special meetings to be held consecutively on or about February 25, 2019. Later this month, details of the proposed Mergers and the Investment Objective Change will be sent to investors in the Funds who are entitled to vote. If the requisite approvals are obtained, it is expected that the Merger, the Investment Objective Change, the Name Change and the Management Fee Reduction will be implemented effective on or about March 4, 2019. As soon as practicable following the Mergers, the Terminating Funds will be wound up.
About Ninepoint Partners
Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $2.5 billion in assets under management. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including North American Equity, Global Equity, Real Assets & Alternative Income.
Ninepoint Partners LP