Toronto-based Purpose Investments Inc. announced the addition of Purpose Short Duration Tactical Bond Fund to its roster.
The new fund is designed to maximize the yield opportunity of a short-duration, investment-grade bond portfolio, according to the firm’s news release.
“The biggest challenge facing investors and advisors today is how to maximize yield from fixed-income while limiting their interest rate risk,” says Som Seif, president and CEO of Purpose Investments, in a statement.
“Passively holding bonds over the past 30 years has been extremely rewarding. However, today the reward relative to the risk of a ‘buy and hold’ bond portfolio is no longer as attractive,” he adds.
“With Purpose Short Duration Tactical Bond Fund, we focus on enhancing the yield opportunities in bonds while reducing the amount of interest rate risk to no more than 2.5 years of duration by using hedging strategies,” Seif says. “The result should be a better reward per unit of risk in a bond portfolio.”
The fund has completed its distribution of ETF untis and began trading on the Toronto Stock Exchange under the ticker symbol “SBND” on Thursday.