Purpose Diversified Real Asset Fund February Commentary

Market Commentary

Global stock markets shrugged off their January losses and rallied back in February as investors reversed their aversion to risk assets and poured money back into equity markets across the globe. The geopolitical trouble in Ukraine impacted agriculture and energy exports from the region raising anxiety and world commodity prices. Natural gas was especially volatile as the cold snap continued into February, depleting the already low reserves in the U.S. and Canada. Physical gold and equities continued their 2014 rally and were top performing asset classes. The ECB echoed the U.S. Fed’s statements about continuing with their policy of low rates to avoid a weak inflationary environment. Currencies saw increased volatility, with the Canadian Dollar touching 1.12 relative to the U.S. Dollar towards the end of January and then settling back in at 1.11 for February.

Fund Commentary

The Fund gained as real assets and dividend paying sector equities rallied during the month of February. The best performing asset classes were real estate and precious metals while the worst performing asset classes were base metals and energy. The best performing commodity for the month was gold as precious metals continue to recover from multi-year lows. Copper, although higher on the month due to optimism around increased demand from improving industrial capex, was the Fund’s relatively worst performing commodity. February Shanghai Copper inventories were near 9 month highs and remain closely monitored as a signal of the Chinese recovery.

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