Purpose Best Ideas Fund December Commentary

Fund Commentary

The Fund seeks to provide shareholders with attractive long-term capital appreciation by investing in a high conviction portfolio of North American equities.The Fund invests in a portfolio of North American equities held by some of world’s most renowned investment managers.

The Fund was positive in December. The best performing sectors were consumer discretionary, industrials and staples, while technology, financials and healthcare were the worst. The best performing stocks were Walgreen, Dollar General and General Motors. Walgreen surged higher after its CEO stepped down clearing the way for top shareholder Stefano Pessina to tighten his control in a merger with his European retailer Alliance Boots. Dollar General rose despite slightly missing earnings estimates, as the market focused on its positive growth outlook next quarter. Persistent merger rumours surrounding the discount retailing group also were also supportive. General Motors rallied into year- end on the strength of recent performance in China and the U.S.. Falling gas prices also helped boost the sales outlook going into 2015.

The worst performing names were Apple, Mondelez and Alibaba. Apple saw profit taking into December after gaining almost 50% in 2014. Alibaba also saw profit taking after seeing year to date gains following its much heralded IPO earlier in the year. Mondelez sank as its proposed merger with D.E Master Blenders faced regulatory obstacles from European Union regulators, who initiated an extensive investigation to gauge possible violation of antitrust laws.

The portfolio continued to hedge USD currency exposure maintaining a net USD exposure at approximately 10% of the Fund’s NAV.

Market Commentary

Markets were volatile into the end of the year. Weak economic data out of Japan, China and Europe dampened the global growth outlook, while heavy selling across Russian equities and the ruble dragged on emerging markets that was reminiscent of 1998. Stock indices fell early in the month as heavy selling across the energy sector and general risk reduction weighed on the broader market. However, the U.S. was the positive global influence as strong jobs and GDP numbers coupled with accommodative language from the Fed helped stem the decline and propel a recovery rally into Christmas.

Commodities saw general weakness into year end with most of the focus still on crude prices which tumbled an additional 19%. OPEC indifference continued to sway markets as the Saudis discounted crude prices for Asian customers and forecasted demand down into 2015.

The U.S. dollar closed out the year at the highs with the Fed on a course to hike rates in 2015. EUR fell to new lows on the year with many expecting the ECB to conduct further quantitative easing in early 2015. Emerging market and commodity based currencies saw weakness throughout December. CAD was no exception closing the year above 1.1600.

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