NOTICE TO INVESTORS IN THE STONE MUTUAL FUNDS
Stone Dividend Growth Class, Stone Growth Fund, Stone Dividend Yield Hog Fund, Stone Covered Call Canadian Banks Plus Fund, Stone American Dividend Growth Fund, Stone Global Balanced Fund, Stone Global ESG Strategy Fund, Stone Global Growth Fund and Stone Global Sustainability Fund (collectively, the “Stone Mutual Funds“)
Re: Acquisition of Stone Investment Group Limited by Starlight Investments Capital LP and Change of Control of the Manager of the Stone Mutual Funds, Notice under Section 5.8(1)(a) of NI 81-102
On April 7, 2022, Stone Investment Group Limited (“Stone” or the “Company“) and Starlight Investments Capital LP (“Starlight Capital“) announced that they have entered into an arrangement agreement pursuant to which Starlight Capital, through a wholly-owned subsidiary, will acquire Stone through a series of transactions. On completion of the transactions, Stone Asset Management Limited (“SAM“), a wholly-owned subsidiary of Stone and manager of the Stone Mutual Funds, will become an indirect wholly-owned subsidiary of Starlight Capital. This will result in a change of control of SAM for purposes of National Instrument 81-102 – Investment Funds (“NI 81-102“). This notice is provided to the investors in the Stone Mutual Funds in accordance with NI 81-102. You are not required to take any action as a result of these transactions.
Starlight Capital is an independent asset management firm offering mutual funds, exchange-traded funds, offering memorandum funds and structured products. Starlight Capital is a leading independent investment manager that is focused on helping Canadian investors realize their financial goals. Starlight Capital is a wholly-owned subsidiary of Starlight Investments, a privately-held real estate investment and asset management company with over $25.0 billion of assets under management.
Stone is an independent wealth management company offering the Stone Mutual Funds and private managed accounts. The boards of directors of each of Starlight Capital and Stone believe that the combination of the two businesses will create additional depth in investment and client service. It is expected that all key personnel to the Stone Mutual Funds will continue to serve following the change of control.
The closing of Starlight’s acquisition of Stone is subject to receipt of all necessary approvals and customary closing conditions, including the non-objection of Canadian securities regulators and approval by the shareholders of Stone. It is expected that the transactions will close in mid-June 2022.
For further information please review the joint press release issued on April 7, 2022 outlining the transactions.
Should you have any questions about this notice, please contact your advisor, or feel free to contact us at (416) 364-9188 or by e-mail at email@example.com.
Congratulations to our Portfolio Management Teams at SAM and Rathbones for their 2021 FundGrade A+® Award Wins!
“It is an honour to be recognized once again at this year’s FundGrade A+® Awards. At Stone we pride ourselves on the strengths of both our in-house Portfolio Managers and the quality of our sub-advisory relationships. These awards recognize Stone Funds in each of our exclusive Pure Total Return® and Pure Growth® mandates, proof that our investment process and philosophy continue to deliver outstanding performance that allows our investors to sleep well, knowing they’ll have the financial resources to live well.”
– Richard G. Stone, Chief Investment Officer, Stone Asset Management Limited
Since its debut in 2012, The FundGrade A+® award has become a highly prized achievement in the Canadian investment funds industry. The FundGrade A+® award has been accepted and embraced as a truly objective, independent mark of distinction for those funds and fund managers who receive the award. Achieving a FundGrade A+® Rating denotes inclusion in an exclusive group, because around 6% of the investment fund products available in Canada have received a FundGrade A+® rating.
FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.
Congratulations to our portfolio managers at SAM for winning back-to-back Lipper Awards!
Stone Dividend Growth Class Series F | Best Fund Over Past Five Years | Canadian Dividend & Income Equity
“Awards are a recognition of end results. At Stone, this means a commitment to our investment process and our in-house investment managers, and providing service where the customer comes first. Stone Dividend Growth Class also won a Lipper Award last year for its three-year results. We are proud to continue delivering outstanding performance that allows our investors to sleep well, knowing they’ll have the financial resources to live well.” – Richard G. Stone, Chief Investment Officer
See the full list of winners on globeandmail.com
About Refinitiv Lipper Fund Awards:
For more than 30 years and in over 17 countries worldwide, the highly respected Refinitiv Lipper Awards have honoured funds and fund management firms that have excelled in providing consistently strong risk-adjusted performance relative to their peers and focus the investment world on top-funds. The merit of the winners is based on entirely objective, quantitative criteria. This coupled with the unmatched depth of fund data, results in a unique level of prestige and ensures the award has lasting value. Renowned fund data and proprietary methodology is the foundation of this prestigious award qualification, recognizing excellence in fund management. Find out more at www.lipperfundawards.com
“Return issuer brings attractive investment opportunities to MFDA and IIROC communities…”
Read more on financialpost.com
REFINITIV LIPPER FUND AWARDS 2020 WINNER CANADA
Stone Dividend Growth Class Series A | Best Fund Over Past 3 Years | Canadian Dividend & Income Equity
Stone Growth Fund Series A | Best Fund Over Past 3 Years | North American Equity
“The Refinitiv Lipper Fund Awards celebrate exceptional investment management. In a year of dramatic change across the global economy, climate, the environment and political cultures, it has never been more important to have your investments entrusted with talented and experienced professionals. The Refinitiv Lipper Fund Awards recognize those exceptional managers and fund management groups who navigate these changes and steer your savings into outperforming returns”, said Robert Jenkins, Head of Research, Lipper, Refinitiv. “We at Refinitiv congratulate the 2020 Refinitiv Lipper Fund Award winners for delivering outstanding performance to their investors and wish Stone Asset Management Limited continued success.”
Stone Asset Management Limited extends our congratulations to all the other winners who are providing outstanding investment performance for Canadian investors this year.
The Refinitiv Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Refinitiv Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the Refinitiv Lipper Fund Award. For more information, see lipperfundawards.com. Although Refinitiv Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Refinitiv Lipper.
TORONTO, June 02, 2020 (GLOBE NEWSWIRE) — Return On Innovation Advisors Ltd., the manager of Return On Innovation Fund Inc. (the “ROI Fund”) announces that it has agreed to enter into a transaction with Stone Investment Group Limited (“SIG”), whereby the portfolio of the ROI Fund will be liquidated to cash and transferred to the Stone Growth Fund (the “Growth Fund”) in exchange for units of the Growth Fund, and shareholders of the ROI Fund will become unitholders of the Growth Fund. This transaction is subject to the approval of the shareholders of the ROI Fund and securities regulatory authorities, and the completion of the formal exchange transaction between the ROI Fund and the Growth Fund. Stone Asset Management Limited (“SAM”) is a wholly owned subsidiary of SIG and is the trustee, manager and portfolio advisor for the Growth Fund. The Growth Fund is a mutual fund trust, and one of a family of mutual funds offered by SAM (the “Stone Funds”). The Stone Funds are distributed by prospectus throughout Canada by brokers and mutual fund dealers. If approved, the transaction is expected to close on or about July 30, 2020. Further information regarding the proposed transaction will be mailed to shareholders of the ROI Fund shortly.
About ROI Capital
Established in 2002, ROI Capital is a privately held Canadian investment management firm that specializes in commercial mortgages, loans and private investments. Website: www.roicapital.ca
To Our Valued Clients and Partners,
As we enter the new reality created by COVID-19 (coronavirus) and its continued impact on the global community, I am writing to personally update you on the measures Stone is taking to ensure our business continuity.
In keeping with the most recent guidance from the World Health Organization, Stone has enacted our Business Continuity Plan, with special consideration given to the implications of COVID-19. In this current environment, the well-being of our employees, clients and partners is our primary focus and social distancing will be of paramount importance.
Effective Monday March 16, all Stone employees will be working remotely and leveraging our technology platforms to communicate virtually. Our Toronto office will remain closed until further notice. Rest assured our remote working policies have been rigorously tested and we are confident we can continue to support our business functions and provide exemplary customer service with minimal disruption.
I am sharing this link to a comprehensive overview of the realities of COVID-19 which has provided our management team with great insight. As this is a very fluid situation, we will continue to provide regular updates by email as events unfold.
At present we are thankful that the entire Stone team is well, and we remain available for your questions and feedback. We welcome discussions and sharing of information as we navigate this challenging environment together.
We thank you for your continued support and we wish you and your loved ones good health in the coming weeks.
Richard G. Stone, CEO