Bringing you live news and features since 2006 

Purpose launches Purpose Premium Yield Fund


Purpose Investments has launched the Purpose Premium Yield Fund (PYF). The initial public offering of the Fund's ETF shares has closed and the ETF shares are now trading on the Toronto Stock Exchange.

The Purpose Premium Yield Fund employs a flexible approach to investing, using cash-covered put and covered call option strategies blended with fundamentally-selected equity securities to generate income while mitigating risk. The goal of the Fund is to provide a long-term return similar to the equity markets, but with substantially lower risk than the equity markets. In addition, the Fund aims to pay its returns as a steady stream of tax-efficient high distributions while also generating attractive net asset value growth.
"Investors continue to search for yield in today's low interest rate environment. And in this search for higher yields, we find investors are reaching deeper and deeper into lower grade fixed income products which comes with significant credit and interest rate risks," says Som Seif, President and Chief Executive Officer of Purpose Investments. "We've designed the Purpose Premium Yield Fund to provide investors with a great way to achieve higher levels of income, but without taking on credit or interest rate risk. The Fund will provide an alternative source of income for portfolios, and will allow investors to generate their desired income while reducing their ownership of bonds and equities."
The Purpose Premium Yield Fund is optimised for clients to achieve a great experience. The Fund will target tax-efficient monthly distributions equaling 7% per annum, which are expected to be characterised as capital gains and dividends. The Fund is structured in Purpose's innovative corporate class, which allows investors to move amongst other funds within Purpose Fund Corp. on a tax-efficient basis. Like all Purpose funds, the Fund will provide daily transparency and liquidity. Finally, PYF will have a very low management fee of 0.60% on the ETF Series and Series F shares and 1.60 per cent on the Series A shares.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by