On February 1, 2018, Redwood Asset Management Inc. (“Redwood”), a subsidiary of Purpose Investments Inc., launched the Marijuana Opportunities Fund (the “Fund”), the world’s first actively managed cannabis-focused exchange-traded fund. After the completion of its IPO, the Fund has now begun trading on the Aequitas NEO Exchange under the ticker symbol “MJJ”. The Fund is also available through Fundserv in mutual fund Series A and Series F units.
The Fund’s institutional-style active approach presents an important new alternative to investors in the thriving cannabis-space, which to date has only seen passive funds. While passive funds have provided investors with broad access to the marijuana market, the significant volatility of the sector and the ongoing evolution of the regulatory environment (particularly with the expected legalization of recreational use in Canada later this year) may lead to an investor preference for active management.
Fasken advised Redwood with a team led by Anil Aggarwal (Investment Products and Wealth Management), Munier Saloojee (Investment Products and Wealth Management), Mitchell Thaw (Tax).
The Fund’s institutional-style active approach presents an important new alternative to investors in the thriving cannabis-space, which to date has only seen passive funds. While passive funds have provided investors with broad access to the marijuana market, the significant volatility of the sector and the ongoing evolution of the regulatory environment (particularly with the expected legalization of recreational use in Canada later this year) may lead to an investor preference for active management.
Fasken advised Redwood with a team led by Anil Aggarwal (Investment Products and Wealth Management), Munier Saloojee (Investment Products and Wealth Management), Mitchell Thaw (Tax).
