Purpose Investments Inc. Launches New Funds and Revolutionary Fund Structure

Purpose Investments Inc. (“Purpose”) is pleased to announce that the first two of its funds, Purpose Core Dividend Fund and the Purpose Tactical Hedged Equity Fund (collectively, the “Purpose Funds”), have completed the initial public offering of their exchange traded series of shares (“ETF Shares”). The ETF Shares of Purpose Core Dividend Fund and Purpose Tactical Hedged Equity Fund will commence trading on the Toronto Stock Exchange today under the ticker symbol PDF and PHE, respectively.

Today’s launch is part of Purpose’s first series of open-ended funds for Canadian investors. The Purpose Funds are each a separate class of shares of Purpose Fund Corp. (the “Corporation”) (each a corporate class) and the ETF Shares are a series of such class. Each corporate class is a separate investment fund having specific investment objectives and is specifically referable to a separate portfolio of investments. The Purpose Funds are the first two of five funds which are expected to be launched over the balance of this week. The Corporation will initially offer five funds which include:

  • Purpose Core Dividend Fund (TSX:PDF)
  • Purpose Tactical Hedged Equity Fund (TSX:PHE)
  • Purpose Total Return Bond Fund (TSX:PBD)
  • Purpose Diversified Real Asset Fund (TSX:PRA)
  • Purpose Monthly Income Fund (TSX:PIN)

Each fund will initially offer ETF Shares and three mutual fund series namely, Class A, Class F and Class I shares, which will allow investors to access the funds based on their preferred investment style. “Over the past year we built Purpose from a blank slate and focused our efforts on tackling the issues that investors really care about,” said Som Seif, Founder and CEO, Purpose. “In our mind there were five areas that we needed to address with our products: smart investment strategies; low fees; transparency; ease of use; and tax efficiency.” Smart investment strategies: Anyone can create a low-fee index product. But what matters is investing with intelligence and utilizing the right rules to select and weight the holdings. To achieve this we partnered with Breton Hill Capital Ltd., enabling us to bring some of the most intelligent, rules based investment strategies to Canadian investors. Low fees: It is undeniable that fees are critical to long-term investing success. At Purpose, we will offer some of the lowest fees in the Canadian market, while at the same time, providing the most value relative to our fees to every investor, both small and large. Transparency: Openness is as important to us as it is to our investors, so we weaved an extraordinary level of transparency into our products. Not only do we have daily disclosure of our portfolio holdings, but we also disclose fees, investment strategy and portfolio statistics. Ease of use: We want everyone to be able to “Invest with Purpose” in a manner that is most convenient and comfortable for them. Our funds are available in both a listed ETF series and in mutual fund series, allowing any investor or advisor in Canada to access them. Tax efficiency: Minimizing tax is critical to long-term wealth creation. We designed our products under a unique corporate class structure, the first of its kind in Canada, to enable investors to switch between funds on a tax deferred basis as their needs change, in addition to providing the normal tax efficiency of a corporate class structure. “The launch of our first five funds represents a major milestone in our plan to make everyday investing better and cheaper for Canadians,” continued Seif. “We put our clients at the forefront of everything we do and strive to provide a real long-term benefit to the market by bringing great products with below average management fees to investors.” “We are launching these products as mutual funds, allowing investors and their advisors to access unique and advanced strategies through the channel best suited to them” added Seif. The investment objectives of the five funds are as follows: Core Dividend Fund The Purpose Core Dividend Fund seeks to provide shareholders with (i) long-term capital appreciation through investment in a portfolio of high quality North American dividend-paying equity securities; and (ii) monthly cash distributions. Tactical Hedged Equity The Purpose Tactical Hedged Equity Fund seeks to provide shareholders with (i) consistent long-term capital appreciation with an attractive risk-adjusted rate of return investing in a portfolio of North American equities; and (ii) provide less volatility and low correlation to North American equity markets by hedging the fund’s exposure to overall market risk. Total Return Bond The Purpose Total Return Bond Fund seeks to achieve a positive total return in diverse market environments over time by tactically allocating its assets among a broad range of fixed income securities, including government debt, investment grade corporate debt and high yield debt. Diversified Real Asset The Purpose Diversified Real Asset Fund seeks to provide shareholders with exposure to a diversified portfolio of asset classes that are directly or indirectly linked to physical assets with positive correlation to inflation and are expected to maintain their real (after inflation) value over time. These assets may include precious metals and related equities; industrial, energy and agricultural commodities and related equities; real estate investment trusts (REITs); emerging market (EM) currencies; real return bonds and treasury inflation-protected securities (TIPS) and cash. Monthly Income The Purpose Monthly Income Fund seeks to (i) maximize total return, consisting of dividend income and capital appreciation by tactically investing in a broad range of asset classes which may include equity, fixed income and inflation sensitive securities and cash; and (ii) to provide shareholders with stable monthly cash distributions. Purpose anticipates that the initial public offering of the remaining three funds will be completed on the following dates indicated below:

  • Purpose Total Return Bond Fund – Wednesday, September 4, 2013
  • Purpose Diversified Real Asset Fund – Thursday, September 5, 2013
  • Purpose Monthly Income Fund – Friday, September 6, 2013.

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