Question 1

What is the Purpose Credit Opportunities Class?

Accepted Answer

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.

Question 2

What are the fund’s signature features?

Accepted Answer

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.

Question 3

How is the strategy different from traditional fixed-income bond funds?

Accepted Answer

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.

Question 4

What are the key attributes of your investment process?

Accepted Answer

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.

Question 5

How might someone use the Purpose Credit Opportunities Class in their portfolio?

Accepted Answer

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.

Question 6

What are the credit investment team’s views on using leverage in the fund?

Accepted Answer

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.

Question 7

How is cash used in the fund?

Accepted Answer

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.

SECTOR	ISSUING BANK	THEME	GEOGRAPHY	MATURITY	PORTFOLIO WEIGHT	# OF POSITIONS

Alternatives—

Purpose Credit Opportunities Class