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Purpose Investments Inc. is launching a novel mutual fund that aims to replicate the return of a collection of structured notes.

Toronto-based Purpose says the Purpose Structured Equity Yield Portfolio is a first for Canada by packaging the return of multiple structured notes into a mutual fund.

“The fund is a one-ticket solution that pairs a stable and tax-efficient yield with contingent downside protection built in via an actively-managed derivatives-based strategy,” the firm said in a release.

The new fund is available today in two versions, an F series version that carries a management fee of 0.65%, and an A series that has a 1.65% fee.

“Purpose Structured Equity Yield Portfolio provides investors with an elegant approach to adding stability with above-market yields, even while traditionally stable investments, like fixed income instruments, are seeing their returns compressed,” said Som Seif, CEO and founder of Purpose, in the release.