Toronto-based Purpose Investments Inc. has launched two new alternative investment funds, Purpose Multi-Strategy Market Neutral Fund (TSX:PMM) and Purpose Enhanced US Equity Fund, currency hedged (TSX:PEU) and non-currency hedged (PEU.B).
The ETF units of Purpose Multi-Strategy Market Neutral Fund and the ETF shares of Purpose Enhanced US Equity Fund began trading on the Toronto Stock Exchange Tuesday.
“We are excited about these two new funds as they offer all Canadians access to important alternative investment strategies, but with transparency and low fees,” said Som Seif, president and CEO of Purpose Investments, in a release.
“Each of the two ETFs is the first of their kind in Canada: PMM is the first market-neutral ETF and utilizes a multi-strategy approach to provide positive absolute returns through a group of non-market correlated assets; and PEU is the first ETF to use a 130/30 strategy with U.S. equities to provide enhanced returns without an enhanced level of market risk.”
Purpose Multi-Strategy Market Neutral Fund seeks to provide positive absolute returns that are not correlated to the broader equity or bond markets. The fund will utilize a multi-strategy approach by allocating its assets across various asset classes including equities, currencies and commodities.
Purpose Enhanced US Equity Fund is designed to provide long-term capital appreciation and a superior risk-adjusted return relative to the broad U.S. equity markets. The fund aims to provide returns in excess of the broad U.S. equity markets by investing in a leveraged portfolio of U.S. equities while maintaining a similar level of volatility as the broad U.S. equity markets.
Purpose has over $750 million in assets under management and currently offers 10 exchange traded funds and mutual funds and two closed-end funds across multiple asset classes and strategies.