Purpose Best Ideas Fund April Commentary

Market Commentary

Price action across most assets was generally choppy and range bound, which resulted in volatility falling across the board. Geopolitical concerns in the Ukraine continued to weigh on risk sentiment causing a dip early in the month. However, markets shrugged off these concerns in the belief that prolonged tensions between Russia and the G7 would not escalate. The U.S. saw better ISM and PMI data supporting an outlook for accelerating growth. In addition, the Federal Reserve Board (Fed) and European Central Bank (ECB) both maintained a dovish outlook, with the Fed downplaying a specific path for tightening and promising that it would keep rates near zero for a “considerable time.” China data was still weak and served as an overhang on the EM complex. In commodities, crude and wheat prices rallied as Ukraine tensions escalated. Gold and silver initially saw a safe haven bid, but they eventually sold off on declining Chinese demand. Despite continued dovish comments from the Bank of Canada (BOC), the Canadian dollar strengthened last month on the back of better than expected economic data and a generally weaker U.S. dollar.

Fund Commentary

The Fund launched at the end of April and was up from inception to month end. The top performing sectors were information technology, health care and consumer staples while the bottom performing sectors were materials, industrials and real estate.
Apple was the best performing stock as they initiated a long anticipated 7 for 1 stock split, increased their dividend and announced a share buyback plan attributing to a rise in the stock price. Charter Communications was up sharply after reaching an agreement with Comcast to acquire 3.9 million cable TV customers. HCA Holdings, one of the largest U.S. hospital chains, announced that it may bid for Australia’s second largest hospital operator, HealthScope, as early as next month. The worst performing stock was Priceline which sold off into month end as high-growth momentum stocks in the technology sector declined. Baidu also underperformed as Chinese internet stocks sold off on disappointing earnings. Crown Castle International underperformed post Q1 earnings as the results included the impact of the tower transaction with AT&T, which added 9,700 wireless towers to their portfolio. This was also their first quarter as a REIT, which caused some uncertainty about the accuracy of their forward guidance.
The Fund hedges its USD currency exposure, maintaining a net USD exposure of approximately 10% of the Fund’s NAV.

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