Mr. Craig Basinger reports

PURPOSE INVESTMENTS LAUNCHES ACTIVELY MANAGED PORTFOLIO SOLUTIONS TARGETING CONSERVATIVE, BALANCED, AND GROWTH RISK PROFILES

Purpose Investments Inc. has launched Purpose Active Portfolio Solutions, including three single-ticket portfolio solutions designed to suit a broad range of investor risk tolerance. Each fund, as defined below, seeks to deliver superior investor outcomes by tactically managing asset allocation within defined ranges and selectively deploying active security selection into market segments where the portfolio manager believes it is most likely to add value. As part of this initiative, Purpose is launching three funds: Purpose Active Conservative Fund (PACF), Purpose Active Balanced Fund (PABF) and Purpose Active Growth Fund (PAGF). Each fund has closed the initial offering of its exchange-traded fund units and will begin trading today on the Toronto Stock Exchange under the ticker symbols noted. Each fund also offers conventional Class A, Class F and Class I mutual fund units.

The postpandemic market environment exposed a clear downside to the set-it-and-forget-it 60/40 portfolio. This was most clearly demonstrated in 2022, when equities and bonds became highly correlated with major benchmarks in both asset classes, delivering double-digit negative performance. Purpose believes the forward-looking investment climate features a very different set of challenges than the post-2008 bull market that tends to inform investor recency bias and is launching the funds to address the portfolio management challenges of the future.

This approach differentiates through a combination of three key factors:

1. Dynamic asset allocation;
2. Combining actively managed solutions with passive benchmark allocations;
3. Rigorous underlying fund due diligence to select a combination of third party and proprietary fund vehicles with Purpose-managed products limited to 40 per cent.

"As a firm, we are believers that active management can deliver specific outcomes that are accretive to investment performance and help our clients meet long-term investment objectives," says Craig Basinger, chief market strategist and the funds' portfolio manager. "We believe tactical asset allocation and selectively deployed active management can materially improve risk-adjusted performance relative to pure passive management, and we've designed these funds to match this philosophy."

Purpose Active Portfolio Solutions specifics

Purpose Active Conservative Fund: Focused on income generation, low volatility and preservation of capital to suit the risk tolerance of conservative investors.

Purpose Active Balanced Fund: Pursues a balance of capital growth and income with moderate volatility to suit an average risk tolerance.

Purpose Active Growth Fund: Emphasizes capital growth over income to be suitable for investors with a higher-risk tolerance.

Each fund is managed to a target asset allocation with predefined ranges, allowing for tactical flexibility while staying within the established risk-tolerance framework.

"Purpose's Active Portfolio Solutions make up an exciting initiative that empowers investors to navigate a more complex investment landscape looking forward," says Vlad Tasevski, head of asset management, institutions and investors at Purpose. "We believe these new solutions will be a welcome and exciting addition for our business and clients in providing comprehensive single-ticket solutions across the risk spectrum."

We seek Safe Harbor.