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Purpose Investments launches new structured equity yield product

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PSY Plus seeks to present a compelling alternative to traditional equity and fixed income portfolios through the use of derivative-based strategies linked to equities securities from North American and global issuers. PSY Plus also uses a conservative leverage strategy, which is aimed at providing a higher yield than PSY II.

With a multi-factor portfolio selection strategy, PSY Plus offers access to a diverse portfolio of investments that give off high income while exhibiting a low correlation to broad equity markets. The fund aims to provide investors with potential long-term capital appreciation; a net yield target of 7% to be delivered through stable, enhanced, monthly return-on-capital distributions; and decreased risk relative to investing directly in broad equity markets.

“The past couple years have shown us how market volatility can happen unexpectedly,” said Greg Taylor, chief investment officer at Purpose. “We’re happy to offer more risk-averse investors the opportunity for consistent, healthy yield without sacrificing their peace of mind with a fund that prioritizes downside protection.”

PSY Plus comes in two mutual fund versions, namely series F units (with a management fee of 0.65%) and series A units (1.65%).