Purpose Investments Inc. (“Purpose”) is pleased to announce that the Purpose Healthcare Innovation Yield Fund (TSX: HEAL) has elected to increase its annual distribution target from 5% to 8%, which will be paid in monthly distributions at $0.133 per unit, effective as of November 2022.
The yield increase is a result of the higher option premiums earned by the portfolio that are above the current monthly distributions. As a result, Purpose decided that the excess earned premiums would be distributed to holders of HEAL in the form of a higher distribution rate.
“We’re extremely excited to announce our enhanced yield strategy for the Purpose Healthcare Innovation Yield Fund. Through this change, investors will be able to benefit from a more competitive yield and exposure to the innovative companies in the space at values significantly below last year while positioning themselves for future growth once the market recovers,” says Eden Rahim, portfolio manager of Purpose Healthcare Innovation Yield Fund and one of the world’s leading experts in healthcare investing.
The fund is one of the first of its kind in Canada to provide actively managed exposure to innovation leaders in biotech and healthcare. It has several unique features that separate it from other healthcare funds in Canada:
- Health Care Innovation: In addition to providing exposure to stable, well-recognized global biopharmaceutical, medical technology, and healthcare service providers, the fund also provides investors with exposure to the fastest-growing biotechnology companies that are developing breakthrough therapies and game-changing technologies.
- Yield Focus: Its dynamic option overlay strategy actively treats volatility as an asset to be converted into yield, while preserving significant monthly upside by writing approximately 1-standard deviation out of the money. This has proven to be an advantage in an oscillating market that has prevailed throughout 2022.
- Active Management: The fund is actively managed by Eden Rahim of Next Edge Capital, one of the world’s leading experts in healthcare investing. Mr. Rahim has an academic background in molecular genetics and extensive experience managing life-science and biotech portfolios. His active management, informed by his science background and industry experience, positions the fund to capitalize on high-growth opportunities in the biotech and healthcare sectors.
The recent advances in healthcare are only the beginning of what Purpose believes to be a new multi-year cycle in biotech and healthcare breakthroughs that provides investors with opportunity for attractive long-term returns. The fund invests in an all-cap portfolio in the high-growth areas of gene-editing, digital healthcare, medical testing, dental, health maintenance, hospitals, pharmacies, and animal health. Purpose believes the portfolio holdings are primed for long-term growth and armed with commercialization opportunities and a strong pipeline of products under development.
For more information, please visit: https://www.purposeinvest.com/funds/purpose-healthcare-innovation-yield-etf
About Purpose Investments
Purpose Investments Inc. is an asset management company with approximately $14 billion in assets under management. Purpose has an unrelenting focus on client-centric innovation, and offers a range of outcome-focused products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.
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Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus and other disclosure documents before investing. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Fund distribution levels and frequencies are not guaranteed and may vary at the manager’s sole discretion.
Certain statements in this document may be forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” intend,” “plan,” “believe,” “estimate” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained in this document are based upon what Purpose believes to be reasonable assumptions, Purpose cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on the FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.