Purpose International Tactical Hedged Equity Fund September Commentary

Fund Highlights

  • The Fund finished lower for the month with all sectors and regions ending negative for the month as global markets continued to experience volatility with major global equity indices ending lower. China remained in sharp focus as declining manufacturing and worsening economic data stoked further deflationary fears.
  • Holdings in utilities were the best performers throughout international markets as investors flocked to safety. All constituent countries ended in the red this month led by the U.K., Japan and Europe.
  • The Fund maintains a high defensive posture with net market exposure of ~42%, down from ~58% the last month. This defensive position helped the Fund minimize drawdowns by ~25%.
  • The Fund also received significant tail-wind from currency exposure to Japanese and European equities as the Canadian dollar held well versus these currencies.
  • Market Commentary

    Global markets continued to experience volatility in September with major global equity indices ending lower on the month. China remained in sharp focus as declining manufacturing and worsening economic data stoked further deflationary fears. Over the past year, the Fed has prepared the market for an imminent interest rate hike, however they stood still on rates this month citing global economic and financial developments that put further downward pressure on inflation in the near term. With much uncertainty surrounding the outlook for global growth, risk was pared back notably across cyclical sectors. Commodity prices fell led by energy and metals. In currencies, commodity currencies were broadly sold with the loonie making new lows on the year.

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