Description

The Purpose Monthly Income Fund aims to provide consistent income and regular monthly payouts by strategically investing across a diverse array of asset types. Its core methodology involves risk-parity weighting, which ensures that the total risk of the portfolio, gauged by the volatility of its returns, is uniformly distributed among all constituent asset classes. Consequently, each asset class contributes an equivalent share to the overall portfolio risk. To achieve its investment objectives and generate earnings, PIN has the flexibility to employ various financial instruments. These may include writing cash-covered put options or covered call options, utilizing warrants and Exchange Traded Funds (ETFs), or engaging in derivatives like options, forward contracts, futures, and swaps. The fund may also maintain positions in cash or fixed income securities. The options employed by the fund can be either those traded on an exchange or over-the-counter (OTC) options. Typically, the fund's holdings undergo reconstitution and rebalancing on a monthly basis, though the portfolio advisor retains the discretion to alter this schedule. Furthermore, at the advisor's discretion, a portion of the fund's foreign currency exposure may be hedged back to Canadian dollars (CAD).