New cash management solution from Purpose enables investors to use rising rates to their advantage
Purpose Investments Inc. (“Purpose”) is expanding its industry-leading cash solutions lineup with the launch of Purpose Cash Management Fund (“the Fund”), which will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker, MNY.
Using the innovative approach it pioneered with the launch of the world’s first high-interest savings ETF (Purpose High Interest Savings ETF – PSA) in 2013, Purpose designed this Fund to take advantage of the current economic environment and turn rising interest rates into higher yields for investors’ cash allocations. As the Bank of Canada is expected to raise rates to quell inflation, the Fund’s yields are expected to increase in tandem, offering higher yields than traditional cash alternatives while still keeping true with other money market funds offering safety and stability.
“We’re in a very challenging market environment this year, and with interest rates moving higher, we wanted to offer investors a new way to manage their cash and maximize their yield,” says Greg Taylor, Chief Investment Officer at Purpose.
“Investing in non-yield optimized cash options or allocating your money in longer-term deposits can be detrimental to your portfolio when inflation is rising faster than your returns,” says Vlad Tasevski, Chief Operating Officer and Head of Product at Purpose. “With the Purpose Cash Management Fund, we aim to provide investors with a way to capitalize off rising interest rates while maintaining daily liquidity. Given that the markets have been so volatile, the Fund will provide investors with a safe and attractive yield option for their cash balances.”
Purpose has closed the offering of the initial units of the Fund and is excited to offer investors ETF units (TSX ticker: MNY), Class A, and Class F units.
Purpose’s Next-Generation Money Market Fund
To combat the fight against inflation, every dollar counts. The Purpose Cash Management Fund was designed to put your money to work, with portfolio managers actively working to ensure the Fund can deliver against its primary objectives – providing principal stability and attractive yields.
The Purpose Cash Management Fund has an anticipated net yield of roughly 3.30% as of September 14. The Fund’s portfolio managers will primarily focus on Canadian-dollar cash and short-term, high-quality money market instruments. The key focus of the portfolio strategy will be on managing liquidity, diversification, and credit quality.
Key benefits of the Fund include:
- High levels of liquidity and capital preservation by investing in a diversified portfolio of high-quality Canadian-dollar money market instruments.
- Attractive yields generated without taking undue risk to meet current income requirements.
- Active management to adjust the portfolio strategy to take advantage of the changing market environment.
In the current unsettled markets, cash allocations in portfolios have been rapidly rising as investors look for low risk and low volatility. The Purpose Cash Management Fund is an excellent alternative to other traditional cash alternatives for investors looking to offset greater volatility of the bond and equity markets without locking them in with guaranteed investment certificates (“GICs”). Further, the Fund serves as an efficient tool for bulk trading. It can be bought and sold in large sizes without market impact.
The Purpose Cash Management Fund is the latest offering in Purpose’s industry-renowned cash lineup, which features the world’s first high-interest savings ETF, Purpose High Interest Savings ETF (TSX ticker: PSA), and Purpose US Cash Fund (TSX ticker: PSU.U), among others. Purpose’s existing cash funds are known for offering best-in-class yields higher than traditional cash alternatives, deposited safely with Canada’s big banks.
Purpose revolutionized cash investing with the introduction of Purpose High Interest Savings ETF (PSA) in 2013. Today, Purpose is proud to expand its cash lineup with Purpose Cash Management Fund to provide investors with a new way to maximize returns on their cash balances as interest rates move higher. Learn more about the Fund here: purposeinvest.com/funds/purpose-cash-management-fund
About Purpose Investments Inc.
Purpose Investments Inc. is an asset management company with over $13 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. For more information, please visit: www.purposeinvest.com.
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The content of this document is for informational purposes only, and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained in this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice.
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