Redwood Asset Management Inc.

Redwood Asset Management Inc.

April 26, 2012 11:55 ET

Redwood Income Strategies Class: All Asset. All Cap. All Income.

TORONTO, ONTARIO--(Marketwire - April 26, 2012) - The Redwood Income Strategies Class, formerly the Redwood Ark Monthly Income Class, has a four year track record of outperforming its benchmark and peer group average.

The fund, advised by Ben Cheng at Aston Hill Investments, has an unconstrained investment mandate allowing the portfolio management team to invest in any asset class, any market capitalization and overweight cash when they believe it to be prudent.

In addition to the fund's name change, Redwood has also added two series' to the fund that allow for incentive fees to be earned by the Manager, if the fund outperforms its benchmark. Redwood believes in capping investment mandates at modest asset levels and incentivizing portfolio managers to generate benchmark-beating investment returns over time.

"We believe that due to the current asset size, and our intention to cap the fund's assets at $250 million, that the portfolio will remain sufficiently nimble to participate in income opportunities across the market capitalization spectrum - allowing Ben and his team find excellent risk/reward opportunities," said Peter Shippen, President of Redwood.

Ben Cheng, President and CIO of Aston Hill added that "Redwood Income Strategies is a way of showcasing the breadth and depth of expertise at Aston Hill in an unconstrained, all cap mandate."

All Asset. All Cap. All Income.™

The fund's investment objectives and risk parameters have not changed. Below is a summary of some key attributes of the investment mandate:

  • Multi-asset fund managed by Ben Cheng and drawing on the expertise of the entire investment team at Aston Hill.

  • Nimble mandate, capped at $250 million, to ensure access to opportunities across the market capitalization spectrum.

  • Continued focus on income producing securities with superior risk/reward characteristics.

Energy Fund Changes

In addition to the changes above, Redwood would also like to announce name changes to the Redwood Catapult Energy Class Fund and Redwood Ark Energy Class.

The Redwood Ark Energy Class will be renamed Redwood Energy Income Class. The fund name change reflects the Manager's desire to increase the securities in the portfolio generating a current yield.

Starting in May 2012, the fund will target a minimum of 50% of the portfolio in yielding securities. The fund will continue to have exposure across all sub-sectors of the energy space with continued exposure to junior companies.

The Redwood Catapult Energy Class Fund will be renamed Redwood Energy Growth Class, and will continue to invest predominantly energy companies with superior growth potential.

Summary of Name Changes

Funds New Fund Name
Redwood Catapult Energy Class Fund Redwood Energy Growth Class
Redwood Ark Energy Class Redwood Energy Income Class
Redwood Ark Monthly Income Class Redwood Income Strategies Class

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