Tuesday October 14th, 2014
Purpose Investments Inc. (“Purpose”) is pleased to announce the launch of two new alternative investment funds, Purpose Multi-Strategy Market Neutral Fund (TSX:PMM) and Purpose Enhanced US Equity Fund (TSX:PEU) & (TSX:PEU.B) (collectively the “Funds”). Purpose has completed the initial public offering of the ETF units of PMM and the currency hedged and non-currency hedged ETF shares of PEU and PEU.B, respectively. The ETF units of the Purpose Multi-Strategy Market Neutral Fund and the ETF shares of the Purpose Enhanced US Equity Fund will commence trading on the Toronto Stock Exchange today under the ticker symbols PMM, PEU (currency hedged) and PEU.B (non-currency hedged), respectively.
“We are excited about these two new funds as they offer all Canadians access to important alternative investment strategies, but with transparency and low fees,” said Som Seif, President and Chief Executive Officer of Purpose Investments. “Each of the two ETFs is the first of their kind in Canada: PMM is the first market-neutral ETF and utilizes a multi-strategy approach to provide positive absolute returns through a group of non-market correlated assets; and PEU is the first ETF to use a 130/30 strategy with U.S. equities to provide enhanced returns without an enhanced level of market risk.”
“Both Funds build on our successful family of traditional and alternative investment funds available for all Canadians, small and large investors. Our goal is to change the way traditional investment strategies employ risk management and also change the way alternative strategies are delivered to investors; properly pricing the fees so to actually be able to deliver on their stated goals. The key differences between Purpose and traditional hedge funds are: i) all our funds are publicly offered under a prospectus available for all investors; ii) we provide daily liquidity; iii) we provide daily transparency to all holdings and strategies (no “black box” strategies); and iv) all Purpose Funds have very low relative management fees, and we do not charge performance fees,” continued Seif.
Purpose Multi-Strategy Market Neutral Fund (TSX:PMM)
The Purpose Multi-Strategy Market Neutral Fund seeks to provide positive absolute returns that are not correlated to the broader equity or bond markets. The Fund will utilize a multi-strategy approach by allocating its assets across various asset classes including equities, currencies and commodities.
Purpose Enhanced US Equity Fund
(Currency Hedged – TSX:PEU & Non-Currency Hedged – TSX:PEU.B)
The Purpose Enhanced US Equity Fund is designed to provide long-term capital appreciation and a superior risk-adjusted return relative to the broad U.S. equity markets. The Fund aims to provide returns in excess of the broad U.S. equity markets by investing in a leveraged portfolio of U.S. equities while maintaining a similar level of volatility as the broad U.S. equity markets.
“At Purpose, we continue to look for ways to bring real value and innovation to investors in a way that is missing from the marketplace. These two new funds are just the latest example of opportunities for investors overlooked by the broader asset management industry.”