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Posted by Purpose Investments on Nov 19th, 2020

Purpose Investments Expands Structured Product Family with Launch of Purpose Structured Equity Growth Fund

Purpose Investments Inc. (“Purpose”) is pleased to announce today the launch of its newest innovation in the structured-products space, Purpose Structured Equity Growth Fund (“the Fund”). The Fund will be available today in two mutual fund versions, Series F (management fee of 0.65%; Fundserv code PFC8301) and Series A (management fee of 1.65%; Fundserv code PFC8300).

Purpose Structured Equity Growth Fund provides investors the opportunity for capital appreciation with the added security of contingent downside protection, replicating the outcome of multiple structured products into a mutual fund solution. The Fund is a one-ticket solution that pairs growth and protection through its actively managed derivatives-based strategy. Investors are able to maximize returns through the Fund’s corporate class structure, which generates tax-efficient returns.

Purpose employs a multi-factor portfolio selection strategy to create a diverse portfolio with a lower correlation to broad equity markets. This includes:

  • Analyzing macroeconomic factors such as earnings, dividend yields, interest rates, economic/business cycles and geopolitical risks.
  • Selecting Global and North American equity indices that have strong fundamentals, create value and reduce risk in a portfolio.
  • Investing in derivatives that provide exposure to selected indices, annual growth potential of +8% (F Series) and contingent protection against losses.

“I’m really excited to be launching Purpose Structured Equity Growth Fund today,” said Som Seif, CEO and Founder of Purpose Investments. “After our successful launch of Purpose Structured Equity Yield Portfolio, we heard from investors that they’d like a similar solution geared towards growth rather than income. We did the research and built this exciting new solution.”

“We’ve spent a lot of time and effort building outcome-oriented solutions for investors, which are especially powerful in today’s environment of uncertainty. This new fund is another way we’re helping investors address market uncertainty,” Seif continued.

The Fund builds off the successes of its spiritual successors, Purpose Structured Equity Yield Portfolio and Purpose Structured Equity Yield Portfolio II, which recently surpassed $1-billion in assets under management. With its launches, we successfully gave advisors a turn-key solution, providing the payoff of multiple structured products into a single-ticket strategy, while investors received a consistent, tax-efficient yield.

“It’s a natural expansion for us after the incredibly positive experience with our first structured-product fund,” said Greg Taylor, Chief Investment Officer of Purpose Investments. “Simplifying a complex strategy for our clients is very important. We did it last year with Purpose Structured Equity Yield Portfolio and now we’re bringing the same ease and convenience to a different type of structured product solution with Purpose Structured Equity Growth Fund.”

About Purpose Investments Inc.

Purpose Investments Inc. is an asset management company with more than $9-billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.

Fund mentioned in this story