Question 1

What is the Purpose Active Equity Fund?

Accepted Answer

PAEF is a single-ticket, global equity-focused portfolio, actively allocated across geographies by the team behind the Purpose Active Suite. It invests primarily in global equities and has the flexibility to invest in other asset classes, including liquid alternatives. It is managed by Purpose Investments and offered as ETF units on the TSX, along with Class A and Class F.

Question 2

Is PAEF actively managed?

Accepted Answer

Yes. PAEF is an actively managed global equity-focused ETF. Rather than simply tracking an index, the portfolio management team actively adjusts the Fund's geographic and other exposures using macroeconomic, momentum and fundamental factors, with the objective of identifying market opportunities and managing risk.

Question 3

What’s the difference between PAEF and PAGF?

Accepted Answer

Both funds are run by the same team using the same macro framework. Purpose Active Growth Fund (PAGF) combines a significant equity allocation with fixed income and diversifiers. PAEF is designed to provide greater exposure to global equities and does not have the strategic fixed-income allocation of PAGF. PAEF invests primarily in global equities, while retaining flexibility to invest in other asset classes. As a result, investors should expect greater exposure to equity-market risk and the associated volatility.

Question 4

How is PAEF different from a traditional index-based global equity ETF?

Accepted Answer

A traditional index-based global equity ETF seeks to track an underlying index. PAEF takes an active approach: the portfolio management team actively adjusts its geographic and other exposures based on its assessment of market opportunities and risks. The Fund can also invest in other asset classes where the team considers it appropriate. This means PAEF's results will reflect the team's active allocation and investment decisions rather than the performance of a particular index, and its management fee reflects that active approach.

Question 5

Why can PAEF hold investments other than equities?

Accepted Answer

PAEF's investment objective is to seek long-term capital growth primarily by investing in a diversified portfolio of global equities, but its mandate also allows the portfolio team to invest in other asset classes when appropriate. This flexibility can be used to seek additional sources of diversification, take advantage of market opportunities and/or manage portfolio risk.

Question 6

Who is the Purpose Active Equity Fund for?

Accepted Answer

PAEF may be suitable for investors seeking long-term capital growth through significant exposure to global equities and who are comfortable with the risks and volatility associated with equity investing. It may also be considered by investors or advisors looking for an actively allocated equity component within a broader portfolio.

Equity—

Purpose Active Equity Fund