Purpose Total Return Bond Fund February Commentary

Market Commentary

Global stock markets shrugged off their January losses and rallied back in February as investors reversed their aversion to risk assets and poured money back into equity markets across the globe. The geopolitical trouble in Ukraine impacted agriculture and energy exports from the region raising anxiety and world commodity prices. Natural gas was especially volatile as the cold snap continued into February, depleting the already low reserves in the U.S. and Canada. Physical gold and equities continued their 2014 rally and were top performing asset classes. The ECB echoed the U.S. Fed’s statements about continuing with their policy of low rates to avoid a weak inflationary environment. Currencies saw increased volatility, with the Canadian Dollar touching 1.12 relative to the U.S. Dollar towards the end of January and then settling back in at 1.11 for February.

Fund Commentary

The Fund delivered positive returns in February from exposure to corporate credit through high yield and investment grade debt. The fund also has exposure to government debt however, it was flat in February.
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.

Following the monthly rebalance, the Fund maintained approximately 66% of net assets in high yield debt and 31% of net assets in investment grade debt. Government debt holdings were increased to approximately 2.4% from under 1% and the Fund’s cash position was lowered to approximately 1%.

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