TORONTO, ONTARIO--(Marketwired - May 3, 2013) - Purpose Investments Inc. ("Purpose") is pleased to announce that it has filed a preliminary long form prospectus, preliminary simplified prospectus and preliminary annual information form for Purpose Fund Corp. (the "Company"). The Company's initial public offering will consist of five classes of shares, each of which is a separate investment fund having specific investment objectives and being referable to a separate portfolio of investments. Each fund will initially offer four series of shares namely, an exchange-traded series of shares and mutual fund Series A, Series F and Series I shares. The initial offering price of each series will be $20.00 per share.
The Company will initially consist of the following funds:
- Purpose Monthly Income Fund
- Purpose Core Dividend Fund
- Purpose Total Return Bond Fund
- Purpose Market-Hedged Equity Fund
- Purpose Diversified Inflation Fund
Purpose Monthly Income Fund
The Purpose Monthly Income Fund seeks to maximize total return, consisting of dividend income and capital appreciation and to provide shareholders with stable monthly cash distributions.
The fund will be tactically managed across a broad range of asset classes including equities, fixed income, inflation sensitive securities and cash based on a risk-parity weighting methodology, with the goal of achieving a positive total return in diverse market environments while reducing portfolio risk.
Purpose Core Dividend Fund
The Purpose Core Dividend Fund seeks to provide shareholders with (i) long-term capital appreciation through investment in a portfolio of high quality North American dividend-paying equity securities; and (ii) monthly cash distributions.
The fund will invest in a portfolio of approximately 40 high quality North American dividend-paying equity securities based on a fundamental rules-based portfolio selection strategy that intends to create value and reduce risk over the investment period. The fund's strategy will be to systematically select companies that have attractive dividend yield and the ability to grow their businesses and dividends for shareholders in the future.
Purpose Total Return Bond Fund
The Purpose Total Return Bond Fund seeks to achieve a positive total return in diverse market environments over time by tactically allocating its assets among a broad range of fixed income securities, including government debt, investment grade corporate debt and high yield debt.
The fund will obtain exposure primarily to a portfolio of North American fixed income securities including government debt, investment grade corporate debt and high yield debt instruments. When appropriate, the portfolio may also use derivatives, such as options and futures contracts, as permitted by Canadian securities laws to hedge against interest rate exposure and manage duration risk to protect capital. The portfolio will be rebalanced monthly based on a tactical asset allocation strategy.
Purpose Market-Hedged Equity Fund
The Purpose Market-Hedged Equity Fund seeks to provide shareholders consistent long-term capital appreciation with an attractive risk-adjusted rate of return, while providing less volatility and low correlation to major equity markets.
The fund will use a multi-factor, fundamental rules-based portfolio selection strategy to select long portfolio securities from a universe of North American equities. The selection strategy will emphasize factors that have shown to be effective at differentiating between strong and weak performing stocks including: fundamental change, valuation, growth and quality. The investment advisor will tactically hedge up to 75% of the fund's market exposure in order to reduce overall market exposure and the market risk associated with the fund's portfolio investments.
Purpose Diversified Inflation Fund
The Purpose Diversified Inflation Fund seeks to provide shareholders with diversified exposure to a broad set of inflation-related investments, including non-traditional assets that are positively correlated to inflation.
The fund may use various asset classes to provide positive correlation to inflation including: precious metals and related equities; industrial, energy and agricultural commodities and related equities; real estate investment trusts (REITs); emerging market (EM) currencies; real return bonds and treasury inflation-protected securities (TIPS) and cash. The portfolio will be tactically rebalanced on a quarterly basis with a risk-parity focused asset allocation strategy to maximize returns while reducing risk.
About Purpose Investments Inc.
Purpose is an investment management firm inspired by the belief that all investors should have access to great investment products at reasonable fees. Through innovative and thoughtful product design and development, Purpose's investment strategies are managed with prudence, a long-term perspective, and with the goal of providing returns that are consistently better than those of a benchmark index. Purpose believes in focusing on managing risk and creating value that is currently missing from the marketplace, thus empowering all Canadians to be better investors. Purpose is the manager of NexC Partners Corp. (TSX:NXC), an investment fund which invests in a portfolio of high quality North American dividend-paying equity securities and holds an equity stake in Purpose.
A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained by calling toll-free at 1-877-789-1517 or by emailing info@purposeinvest.com . There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
For more information visit www.purposeinvest.com or follow Purpose on Twitter @purposeinvest.
