Purpose Enhanced US Equity Fund May Commentary & Fund Update

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Fund Commentary

The Fund was positive in May. U.S. stocks grinded higher and the S&P posted new all-time highs. U.S. GDP contracted 0.7% although this was widely attributed to seasonal factors which were expected to rebound later in the year. Job growth remained steady which supported the Fed’s goal of raising rates in Q4.

Healthcare, technology and consumer staples were the best performing sectors with Health Net, Triumph Group and Cigna the most profitable names. Energy and materials sectors underperformed with Freeport-McMoRan, Oil States International and QEP Resources the largest laggards.

The Fund completed a monthly rebalance, turning over 15 names in the portfolio. This month Centurylink was added to the portfolio, giving the fund exposure to telecommunication services.

The Fund is levered by approximately 25% and has an offsetting short equities futures hedge of approximately 25%.

With respect to the currency hedged shares the Fund continued to hedge its USD currency exposure maintaining a net USD exposure at approximately 10% of the Fund’s NAV. This month unhedged long USD exposure was a tailwind as CAD declined 3.5% against the U.S. dollar.

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