Purpose Investments Unveils New US Dollar Cash Management Fund to Expand Industry-Leading Cash Solutions Lineup
April 27 2023 - 7:30AM
Purpose Investments Inc. (“Purpose”) is excited to announce further
expansion of its industry-leading cash solutions lineup with the
launch of the
Purpose USD Cash Management Fund
(the “
Fund”), which begins trading today on the
Toronto Stock Exchange (“TSX”) under the ticker, MNU.U.
Building off on the success of its Canadian dollar
counterpart, Purpose Cash Management Fund
(TSX: MNY), which launched in September 2022, the Purpose
USD Cash Management Fund is designed to navigate the
current economic environment and turn high interest rates into
attractive yields for investors with US dollar cash
allocations. At launch, the initial target annualized net
yield is expected to be 5.01%.
The Fund invests in high-quality, short-term money market
instruments denominated in US dollars to deliver against its
primary objective of preserving capital and maintaining liquidity
without taking undue risk.
“Against the backdrop of sticky inflation, which may keep
interest rates higher longer, prudent duration and robust risk and
liquidity management for cash investments has become a key
consideration for investors looking to earn an attractive return,”
says Greg Taylor, Chief Investment Officer at Purpose.
The Purpose USD Cash Management Fund is an excellent alternative
to other traditional US dollar cash alternatives for investors
looking to reconsider their cash and liquidity strategies
without locking them in with guaranteed investment
certificates. The Fund also serves as an efficient tool
for bulk trading.
“Lately, many investors are positioned defensively or have an
elevated need for daily liquidity, keeping higher than usual cash
balances. With record-high interest rates, investors are able to
earn competitive returns on their cash investments for the first
time in many years,” says Vlad Tasevski, Chief Operating Officer
and Head of Product at Purpose. “The higher interest rates
have made money market funds very attractive in the current market,
in turn, increasing the minimum acceptable rate of return to invest
in all other asset classes.”
Purpose has closed the offering of the initial units of the Fund
and is pleased to offer investors US dollar-denominated ETF
non-currency hedged units (TSX: MNU.U), Class A units and Class F
units. The mutual fund units of the Fund will be offered at a fixed
$10.00 net asset value.
Key benefits of the Fund include:
- High levels of liquidity and capital preservation by investing
in a diversified portfolio of short-term, high-quality,
US-dollar-denominated money market instruments.
- Attractive yields are generated without taking undue credit
risk to meet monthly current income requirements.
- Active management to adjust the portfolio strategy to take
advantage of the changing market environment.
- Trades in US dollars and offered both as an ETF and mutual fund
for ease of use, based on investor preferences.
The Purpose USD Cash Management Fund is the latest offering in
Purpose’s industry-renowned cash lineup, which features the world’s
first high-interest savings ETF, Purpose High Interest Savings Fund
(TSX: PSA) and Purpose US Cash Fund (TSX: PSU.U), among others.
Purpose’s cash lineup is known for offering best-in-class yields
significantly higher than traditional cash alternatives, deposited
safely with Canada’s big banks.
Purpose revolutionized cash investing with the introduction of
the Purpose High Interest Savings Fund in 2013 and is proud to
expand its lineup with the Purpose USD Cash Management Fund to
provide investors with a new tool to maximize returns on their US
dollar cash balances. Learn more about the Fund here:
http://purposeinvest.com/funds/purpose-usd-cash-management-fund
About Purpose Investments
Purpose Investments is an asset management company with
approximately $16 billion in assets under management. Purpose
Investments has an unrelenting focus on client-centric innovation,
offering a range of managed and quantitative investment products.
Purpose Investments is led by well-known entrepreneur Som Seif and
is a division of Purpose Unlimited, an independent,
technology-driven financial services platform that is reshaping the
industry by connecting and creating opportunities across asset
management, wealth management and small business financial
services.
For further information, please contact:Keera
HartKeera.Hart@kaiserpartners.com905-580-1257
Commissions, trailing commissions, management fees and expenses
may all be associated with investment fund investments. The
prospectus contains important detailed information about the
investment fund. Please read the prospectus before investing. There
is no assurance that any fund will achieve its investment
objective, and its net asset value, yield, and investment return
will fluctuate from time to time with market conditions. Investment
fund securities are not covered by the Canada Deposit Insurance
Corporation or by any other government deposit insurer. Investment
funds are not guaranteed, their values change frequently, and past
performance may not be repeated.
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