Frequently Asked Questions
What is the Purpose Credit Opportunities Class?
Purpose Credit Opportunities Class is an actively managed credit fund that aims to deliver strong, equity-like returns with fewer ups and downs. The investment team takes an unconstrained approach and invests across the entire capital structure, from government bonds to high-yield securities and preferred shares.
What are the fund’s signature features?
Purpose Credit Opportunities Class provides access to the diversified, high-conviction fixed income strategy of the Purpose Credit Opportunities Fund (ticker: “CROP”) through a corporate class structure that seeks to enhance total after-tax returns for investors. The Managers take a hands-on, research-driven approach and instead of following a market index, they focus on finding undervalued credit opportunities in companies that generate steady cash flow with strong asset value protection of creditors.
How is the strategy different from traditional fixed-income bond funds?
Most bond funds rely on falling interest rates to perform well. The Purpose Credit Opportunities Class takes a different route – its returns come from actively spotting overlooked credit investments with strong yield potential, no matter what’s happening with interest rates. Because of this, its performance should behave differently from traditional bond strategies, adding a useful layer of diversification to your portfolio.
What are the key attributes of your investment process?
The investment process is rooted in a lender’s mindset with deep-value, bottom-up research that targets high-conviction opportunities across the capital structure. It emphasizes strong fundamentals – cash flow, liquidity, and asset protection – while remaining fully index-agnostic.
How might someone use the Purpose Credit Opportunities Class in their portfolio?
You can use the fund as a core alternative credit strategy to enhance yield, lower interest rate sensitivity, and diversify from traditional fixed income that may be challenged by increased bond supply from significant fiscal deficits for years to come. The Fund is expected to exhibit low correlation and focus on undervalued assets, which may support improved risk-adjusted return potential in today’s challenging market environment.
What are the credit investment team’s views on using leverage in the fund?
Deliberately avoiding leverage reduces risk and enhances stability, especially in volatile markets, ensuring the team can consistently perform across different market conditions without taking on unnecessary risk. The decision allows the team to focus on quality opportunities while maintaining liquidity.
How is cash used in the fund?
The fund’s high-liquidity investment allocation is intentional, allowing it to seize opportunities during market dislocations. That cash also generates a healthy yield while adding flexibility and downside protection.
Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. The prospectus contains important detailed information about the investment fund. Please read the prospectus before investing. There is no assurance that any fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. The indicated rate of return is the historical annual compounded total return including changes in share/unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns.
This information is provided for illustrative and discussion purposes only. This material is not intended as a formal research report and should not be relied upon as a basis for making an investment decision. Historical trends do not imply, forecast or guarantee future results. Information is as of the date indicated and subject to change without notice. Nothing herein constitutes a prediction or projection of future events or future market behavior.
If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.