Purpose Total Return Bond 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 tactically allocates across the credit spectrum including high yield, investment grade, government bonds, and cash. The Fund was up for the month of April. It currently has exposure to high yield, investment grade and government debt.
The current portfolio is positioned to benefit from increasing demand for corporate debt, with a tilt to higher demand for high yield over investment grade debt. High yield, corporate and government debt were up during the month of April after dovish Fed comments this month boosted the demand for yield.
The Fund maintained its position of approximately 66% in high yield debt, 31% in investment grade, and 2.4% in government debt. The Fund maintained a cash position of approximately 1%.

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