TORONTO, June 10 /CNW/ - Cinnamon Investments Limited ("Cinnamon"), the manager of the Ravensource Fund (the "Fund") (TSX: RAV.UN), announced today the approval of a change in the manager of the Fund.
At a special meeting today, unitholders of the Fund approved the termination of the portfolio management agreement and administration agreement, pursuant to which Cinnamon currently provides services to the Fund. Unitholders also approved the appointment of Stornoway Portfolio Management Inc. ("Stornoway") as the new investment manager of the Fund. The change in manager, as approved by unitholders, is expected to become effective on or about July 1, 2008.
Stornoway currently act as the investment advisor to the Fund. The benefits of terminating the current management agreements and appointing Stornoway as investment manager are expected to include the avoidance of conflicts of interest and the elimination of the duplication of administrative effort associated with having two entities participating in management of the Fund. It is also anticipated that, as a larger organization, Stornoway will provide a depth of personnel and expertise to the Fund that Cinnamon alone can not provide. Unitholders will further benefit from additional investment professionals at Stornoway at no additional cost as there are no changes proposed to the fee structure of the Fund. Additional information relating to Stornoway is available on its website at www.stornowayportfolio.com.
At the special meeting, unitholders also approved certain changes to the declaration of trust of the Fund. Such changes are designed to allow for more efficient management of the Fund and bring the Fund into alignment with current regulatory and industry practices. Among the changes approved was a new required time frame by which unitholders must provide notice of redemptions, and an extension of the time period by which the Fund is permitted to make a redemption payment to thirty business days from the redemption date.