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PURPOSE TACTICAL
INVESTMENT GRADE
BOND FUND
PURPOSE
MONTHLY COMMENTARY AND REBALANCE UPDATE
FUND DETAILS
TOP HOLDINGS
ETF Series Ticker Symbol:
FundSERV Series Codes:
BND
Series A - PFC 2100
Series F - PFC 2101
Management Fee:
0.35%
Series A Trailer Fee:
0.50%
Distribution Frequency:
Monthly
Distribution Type:
Inception Date:
Interest Income &
Capital Gains
October 28, 2015
PORTFOLIO REBALANCING
Duration Management:
Tactical
Rebalance Frequency:
Quarterly
Currency Hedged:
−
−
−
−
Yes
FUND COMMENTARY
The Fund was slightly negative in
January as investment grade bonds
declined in current interest rate
environment guided by a hawkish Fed
and dovish Bank of Canada.
Canadian bonds provided negative
returns while U.S. corporate bonds
remained largely flat, and U.S. high yield
was the largest detractor.
The Fund hedged duration risk by using
Canadian 10Yr Treasury Futures and
U.S. 10Yr Treasury options in January.
The Canadian interest rate hedge
ended in a small benefit to the Fund
while the U.S. hedge position detracted
significantly.
Energy and high yield were the worst
performing sectors as credit spreads
further widened on conflicting global
growth patterns and investors continued
to flock to the safety of U.S. 10Yr
treasuries.
AS OF 1/31/16
NAME
DURATION
CASH YIELD
WEIGHT
Canadian Corporate Bonds - Top 10
Hydro One Inc
10.91
5.02%
2.25%
Toyota Credit Canada Inc
4.11
2.03%
2.01%
Bell Canada
10.25
5.76%
1.98%
Bank of Montreal
4.79
3.19%
1.94%
1.93%
Loblaw Cos Ltd
10.93
5.31%
Bank of Nova Scotia
4.60
3.10%
1.92%
Toronto-Dominion Bank
7.50
3.08%
1.91%
TransCanada Pipelines Ltd
8.17
3.36%
1.89%
TELUS Corp
7.51
3.66%
1.87%
Royal Bank of Canada
4.72
2.75%
1.86%
1.39%
U.S. Corporate Bonds - Top 10
Verizon Communications Inc
6.35
4.65%
Wells Fargo & Co
9.19
4.18%
1.29%
Wal-Mart Stores Inc
6.35
2.54%
1.26%
Duke Energy Ohio Inc
6.39
3.56%
1.01%
Oracle Corp
8.12
3.01%
0.92%
PepsiCo Inc
6.41
2.70%
0.83%
Bank of America Corp
7.70
4.04%
0.83%
QUALCOMM Inc
7.95
3.54%
0.82%
United Parcel Service Inc
4.62
2.97%
0.82%
Morgan Stanley
8.46
4.32%
0.82%
4.33
7.07
9.31%
U.S. High Yield Bonds
High Yield US Corporate Bond Hedged to CAD Index ETF
Cash
Cash
6.93%
SECTOR BREAKDOWN
AS OF 1/31/16
SECTOR NAME
WEIGHT
Financials
20.02%
Consumer Discretionary
12.24%
Energy
11.74%
Industrials
10.41%
High Yield
9.31%
Telecommunication Services
9.02%
Consumer Staples
8.73%
Utilities
5.72%
Information Technology
2.76%
Health Care
1.63%
Materials
0.79%
Real Estate
0.70%
Cash
6.93%
Total
100.00%
PURPOSEINVEST.COM
PURPOSE TACTICAL INVESTMENT GRADE BOND FUND
PORTFOLIO STATISTICS
DURATION & YIELD BREAKDOWN
AS OF 1/31/16
AS OF 1/31/16
Yield to Maturity (%)
3.37%
Coupon (%)
3.95%
Term (yrs)
7.21
Duration (yrs)
4.46
PURPOSE INVESTMENTS
NOTIONAL
EXPOSURE
DURATION
CONTRIBUTION
CASH
YIELD
Portfolio Gross
93.07%
5.74
3.72%
Short Call Options (U.S. 10 Yr Treas)
-21.94%
-1.28
0.18%
0.00%
0.00
0.00%
4.46
3.90%
Short Futures (CAD 10Yr Fut)
Fund
RATINGS BREAKDOWNS1
AS OF 1/31/16
RATING
WEIGHT
AAA
1.84%
AA
15.02%
A
34.30%
BBB
32.63%
BB
3.60%
B
4.25%
CCC or below
1.43%
Other
0.00%
Cash
6.93%
Total
100.00%
MATURITY BREAKDOWNS
AS OF 1/31/16
TERM
WEIGHT
0 Years
6.93%
0 - 1 Year
0.00%
1 - 5 Years
27.36%
5 - 10 Years
51.94%
10 - 30 Years
13.77%
Other
0.00%
Total
100.00%
INCOME BREAKDOWN
AS OF 1/31/16
Bond Cash Yield (%)
Option Strategy
3.72%
ON
Approximate Option Strategy Yield
0.18%
Portfolio Cash Yield (%)
3.90%
FIXED INCOME SECTOR BREAKDOWNS
AS OF 1/31/16
FISB SECTOR
WEIGHT
Canadian Corporate Bonds
61.83%
U.S. Corporate Bonds
21.93%
High Yield Bonds
Ratings source: FTSE TMX Global Debt Capital Markets and Standard and Poor’s, as applicable. Commissions, trailing commissions,
management fees and expenses all may be associated with investment fund investments. The prospectus contains important detailed
information about the investment fund. Please read the prospectus before investing. The indicated rates of return are the historical annual
compounded total returns including changes in share/unit value and reinvestment of all distributions and do not take into account sales,
redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. As with any
investment, there are risks to investing in investment funds. 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 funds are not guaranteed,
their values change frequently and past performance may not be repeated. The opinions expressed are provided by the portfolio manager
responsible for the management of the Fund’s investment portfolio, as specified in the Fund’s prospectus. Unless otherwise stated, the source
for data cited in any commentary is the portfolio manager. Nothing in any commentary should be considered a recommendation to buy or
sell a particular security. The Fund may sell these securities at any time, or purchase securities that have previously been sold. The securities
may increase or decrease in value after the date hereof, and the Fund may accordingly gain or lose money on the investment in the securities.
The statements by the portfolio managers in their commentaries are intended to illustrate their approach in managing the funds, and do not
necessarily reflect the views of Purpose Investments Inc.
1
9.31%
Cash
6.93%
Total
100.00%
PURPOSE
130 Adelaide St. W
Suite 1700
P.O. Box 83
Toronto, ON M5H 3P5
T: 416-583-3850
TF: 877-789-1517
F: 416-583-3851
www.purposeinvest.com
[email protected]