Bridgehouse introduces Morningstar Managed Investments Program

Toronto-based Purpose Investments Inc. has launched two new corporate-class funds — available as mutual funds and exchange-traded funds (ETF) — aimed at generating income for clients.

“These two new funds represent an important expansion of Purpose’s income solutions suite,” says Som Seif, president and CEO of Purpose Investments, in a statement on Wednesday. “Purpose Conservative Income Fund and Purpose Canadian Financial Income Fund provide investors with important and innovative ways to help satisfy the need for regular monthly income while managing risk through option strategies.”

Purpose Conservative Income Fund is designed for investors looking for a risk-managed strategy that aims to provide a moderate level of income with modest capital appreciation while managing volatility and downside risk. The fund uses an equity option collar overlay strategy, which reduces the fund’s dependence on a heavy bond weighting to achieve a low-volatility profile, and allows for higher exposure to equities.

Purpose Canadian Financial Income Fund is meant to provide exposure to a concentrated portfolio of the largest Canadian banks and life insurance companies. The fund uses an active covered-call option strategy to provide investors with enhanced tax-efficient monthly distributions and the potential for long-term growth while mitigating risk.

The mutual fund versions of both products are available in Series F, which has a management fee of 0.55%, and Series A, which has a management fee of 1.55%. Purpose Conservative Income Fund is also available in Series D, which includes a management fee of 0.8%.

The ETF versions of the two funds, which are currently trading on the Toronto Stock Exchange, have a management fee of 0.55%.

Photo copyright: vinnstock/123RF