Purpose Diversified Real Asset 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 holds a risk-balanced portfolio diversified across agriculture, energy, base metals, precious metals, and real estate.
The Fund was up during the month of April as its exposure to dividend paying value equities gained from a rally across Energy and Materials. The fund ‘s exposure to physical commodities saw mixed performance as agriculture and base metals gained, but precious metals were negative. The best performing commodity for the month was soybeans which rallied on tighter stocks due to increased U.S. exports. Silver was the worst performing commodity due to weak growth in Chinese industrial activity. Gold was flat as geopolitical fears subsided and central bankers maintained a stance of low interest rates.

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