Purpose Investments Announces Yield Increase for Purpose Healthcare Innovation Yield Fund
November 29 2022 - 7:30AM
Purpose Investments Inc. (“Purpose”) is pleased to announce that
the Purpose Healthcare Innovation Yield Fund (TSX: HEAL) has
elected to increase its annual distribution target from 5% to 8%,
which will be paid in monthly distributions at $0.133 per unit,
effective as of November 2022.
The yield increase is a result of the higher option premiums
earned by the portfolio that are above the current monthly
distributions. As a result, Purpose decided that the excess earned
premiums would be distributed to holders of HEAL in the form of a
higher distribution rate.
“We’re extremely excited to announce our enhanced yield strategy
for the Purpose Healthcare Innovation Yield Fund. Through this
change, investors will be able to benefit from a more competitive
yield and exposure to the innovative companies in the space at
values significantly below last year while positioning themselves
for future growth once the market recovers,” says Eden Rahim,
portfolio manager of Purpose Healthcare Innovation Yield Fund and
one of the world’s leading experts in healthcare investing.
The fund is one of the first of its kind in Canada to provide
actively managed exposure to innovation leaders in biotech and
healthcare. It has several unique features that separate it from
other healthcare funds in Canada:
- Healthcare Innovation: In addition to
providing exposure to stable, well-recognized global
biopharmaceutical, medical technology, and healthcare service
providers, the fund also provides investors with exposure to the
fastest-growing biotechnology companies that are developing
breakthrough therapies and game-changing technologies.
- Yield Focus: Its dynamic option overlay
strategy actively treats volatility as an asset to be converted
into yield, while preserving significant monthly upside by writing
approximately 1-standard deviation out of the money. This has
proven to be an advantage in an oscillating market that has
prevailed throughout 2022.
- Active Management: The fund is actively
managed by Eden Rahim of Next Edge Capital, one of the world’s
leading experts in healthcare investing. Mr. Rahim has an academic
background in molecular genetics and extensive experience managing
life-science and biotech portfolios. His active management,
informed by his science background and industry experience,
positions the fund to capitalize on high-growth opportunities in
the biotech and healthcare sectors.
The recent advances in healthcare are only the beginning of what
Purpose believes to be a new multi-year cycle in biotech and
healthcare breakthroughs that provides investors with opportunity
for attractive long-term returns. The fund invests in an all-cap
portfolio in the high-growth areas of gene-editing, digital
healthcare, medical testing, dental, health maintenance, hospitals,
pharmacies, and animal health. Purpose believes the portfolio
holdings are primed for long-term growth and armed with
commercialization opportunities and a strong pipeline of products
under development.
For more information, please visit:
https://www.purposeinvest.com/funds/purpose-healthcare-innovation-yield-etf
About Purpose Investments
Purpose Investments Inc. is an asset management company with
approximately $14 billion in assets under management. Purpose has
an unrelenting focus on client-centric innovation, and offers a
range of outcome-focused products. Purpose Investments is led by
well-known entrepreneur Som Seif and is a division of Purpose
Unlimited, an independent technology-driven financial services
company.
For further information please contact:
Keera HartKeera.Hart@kaiserpartners.com905-580-1257
Commissions, trailing commissions, management fees and expenses
all may be associated with investment fund investments. Please read
the prospectus and other disclosure documents before investing. If
the securities are purchased or sold on a stock exchange, you may
pay more or receive less than the current net asset value.
Investment funds are not guaranteed, their values change frequently
and past performance may not be repeated. Fund distribution levels
and frequencies are not guaranteed and may vary at the manager’s
sole discretion.
Certain statements in this document may be forward-looking.
Forward-looking statements (“FLS”) are statements that are
predictive in nature, depend on or refer to future events or
conditions, or that include words such as “may,” “will,” “should,”
“could,” “expect,” “anticipate,” intend,” “plan,” “believe,”
“estimate” or other similar expressions. Statements that look
forward in time or include anything other than historical
information are subject to risks and uncertainties, and actual
results, actions or events could differ materially from those set
forth in the FLS. FLS are not guarantees of future performance and
are by their nature based on numerous assumptions. Although the FLS
contained in this document are based upon what Purpose believes to
be reasonable assumptions, Purpose cannot assure that actual
results will be consistent with these FLS. The reader is cautioned
to consider the FLS carefully and not to place undue reliance on
the FLS. Unless required by applicable law, it is not undertaken,
and specifically disclaimed, that there is any intention or
obligation to update or revise FLS, whether as a result of new
information, future events or otherwise.
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