TORONTO, July 04, 2018 (GLOBE NEWSWIRE) -- Purpose Investments Inc. (“Purpose”) is pleased to announce the conversion of Purpose Global Financials Income Fund (TSX:PFG.UN) (formerly, Australian Banc Income Fund) (TSX:AUI.UN) into an open-end fund with ETF units and mutual fund units. The Class A units of PFG.UN were delisted from the Toronto Stock Exchange at the close of business on July 3, 2018 and the ETF units were listed on the Toronto Stock Exchange today under the ticker symbol “PFG”.

Unitholders of PFG.UN are not required to take any action in order to become unitholders of PFG. Each holder of Class A units of PFG.UN will automatically receive 1 ETF unit of PFG for each Class A unit of PFG.UN held and holders of non-trading Class F units of PFG.UN will automatically receive 1 Class F unit of Purpose Global Financials Income Fund for each Class F unit of PFG.UN held. New Class A units of the Fund will also be created for non-fee-based advisors.

The conversion should provide unitholders of PFG.UN with several benefits, including the following:

  • A lower management fee and a lower expected management expense ratio – Effective June 14, 2018, Purpose reduced the management fee on PFG to 0.55% per annum, which is a reduction from the 1.05% management fee of PFG.UN.

  • Efficient trading and daily liquidity – As an exchange-traded fund is in continuous distribution, PFG’s ETF units are expected to trade efficiently and close to their net asset value and the units will be redeemable daily at net asset value, thereby significantly increasing liquidity for Class A unitholders of PFG.UN.

  • Monthly distributions – PFG will pay distributions on a monthly basis. This is an improvement over the current quarterly payment schedule of PFG.UN and will provide unitholders with more frequent distribution payments.

  • Expanded mandate – PFG’s investment objective has been broadened to expand the focus of PFG’s investments from common shares of Australian banks to investments in global financial services companies. This will provide investors with significant diversification benefits and  attractive income from a portfolio focused on higher yielding stocks with strong underlying fundamental characteristics.

  • No disposition for tax purposes – The conversion will not result in a disposition of units by holders of PFG.UN, and accordingly, any embedded gain will not be realized as a result of the conversion.

About Purpose Investments Inc.

Purpose Investments is an asset management company with approximately $5.5 billion under management. Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.

For further information please contact:

Nancy Turner
Purpose Investments Inc.
Tel: (877) 789-1517
Email: info@purposeinvest.com

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.