June 2021 Investment Grade Bond Pool completed its initial public offering of units at $10 per unit in April 2017 raising over $32 million of proceeds.
The Fund’s investment objectives are to (i) return to holders of Units, including through principal distributions, the original issue price of $10.00 per Unit on or before June 30, 2021; and (ii) generate over the term of the Fund an average annual total return after fees and expenses of 3.10% for investors in the initial public offering who purchased Class A Units and 3.55% for investors in the initial public offering who purchased Class T Units, by investing primarily in debt securities of Canadian and U.S. companies.
Redwood Asset Management Inc. is the manager of the Fund.
The Fund uses the Unit Traded Fund (UTF) structure which has been developed to accomplish two goals, namely (a) to enable the Fund to invest virtually all of the gross proceeds from the offering in the investment portfolio, and (b) to encourage the Fund’s Class T Units to trade in the market at a price not less than 98.50% of their net asset value throughout the life of the Fund.
Fasken Martineau advised the issuer and the syndicate of agents, with a team that included John Kruk and Jean-Pierre Chamberland (investment funds and capital markets) and Mitchell Thaw (tax).