Purpose Duration Hedged Real Estate 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 was up from inception to month end. The top performing sectors were residential REITs, diversified REITs, and hotel & resort REITs. The bottom performing sectors were specialized REITs, office REITs and health care REITs.
The best performing stocks in the portfolio were Hospitality Properties, Apartment Investment and Management Co, and Winthorp Realty Trust. The worst performing stock were Dundee REIT, Pennsylvania REIT and Canadian Apartment Properties REIT.
The Fund did not have an interest rate futures hedge at inception.
The Fund hedges its USD currency exposure, maintaining a net USD exposure of approximately 10% of the Fund’s NAV.

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