Purpose Investments Files Preliminary Prospectus for the First Yield-Focused Single-Stock ETFs
15 November 2022 - 1:30PM
Purpose Investments Inc. (“Purpose Investments”) has filed and been
receipted for a preliminary prospectus by the Canadian securities
regulators in connection with the proposed launch of the first
yield-focused single-stock ETFs (as outlined below) (collectively,
the “ETFs” or “Purpose Yield Shares”).
ETF Names |
Underlying Issuer |
Security |
Apple (AAPL) Yield Shares |
Apple Inc. |
Common stock |
Amazon (AMZ) Yield Shares |
Amazon.com Inc. |
Common stock |
Tesla (TSLA) Yield Shares |
Tesla Inc. |
Common stock |
Berkshire Hathaway (BRK) Yield Shares |
Berkshire Hathaway Inc. |
Class A common stock, Class B common stock |
Alphabet (GOOGL) Yield Shares |
Alphabet Inc. |
Class A common stock, Class C capital stock |
Microsoft (MSFT) Yield Shares |
Microsoft Corporation |
Common stock |
Exxon Mobil (XOM) Yield Shares |
Exxon Mobil Corporation |
Common stock |
JPMorgan Chase (JPM) Yield Shares |
JPMorgan Chase & Co. |
Common stock |
Johnson & Johnson (JNJ) Yield Shares |
Johnson & Johnson Inc. |
Common stock |
UnitedHealth Group (UNH) Yield Shares |
UnitedHealth Group Incorporated |
Common stock |
Each of the ETFs will seek to provide unitholders with (a)
long-term capital appreciation through purchasing and holding
Securities (outlined above) of an Underlying Issuer, including by
using modest leverage through cash borrowing to purchase Securities
and (b) distributions by writing covered call options and/or cash
covered put options on a portion of the ETF’s portfolio. Each of
the ETFs will hedge substantially all of its U.S. dollar currency
exposure with respect to its units back to the Canadian dollar.
Purpose Yield Shares will aim to provide monthly cash
distributions, though the amount and frequency of distributions are
not guaranteed.
The Purpose Yield Shares suite will be the newest offering in
the firm’s industry-renowned ETF lineup, which includes the world’s
first spot crypto ETFs (TSX tickers: BTCC and ETHH), the world’s
first high-interest savings ETF (TSX ticker: PSA), active
fixed-income strategies (TSX ticker: CROP), and industry-leading
structured equity funds (e.g., Purpose Structured Equity Yield
Portfolio), among others. Learn more about Purpose’s ETFs here:
www.purposeinvest.com.
About Purpose Investments
Purpose Investments is an asset management company with over $13
billion in assets under management. Purpose Investments has an
unrelenting focus on client-centric innovation and offers 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 company.
For further information, please contact:
Keera Hartkeera.hart@kaiserpartners.com905-580-1257
A preliminary long-form prospectus relating to the ETFs (the
“Preliminary Prospectus”) has been filed with the Canadian
securities commissions or similar authorities. You cannot buy
securities of the ETFs until the relevant securities commissions or
similar authorities issue receipts for the final prospectus of the
ETFs. Important information about the ETFs is contained in the
Preliminary Prospectus. Copies of the Preliminary Prospectus may be
obtained from Purpose, or at www.purposeinvest.com.
Commissions, trailing commissions, management fees and expenses
all may be associated with investment fund investments. Please read
the prospectus and other disclosure documents before investing.
There can be no assurance that the full amount of your investment
in a fund will be returned to you. If the securities are purchased
or sold on a stock exchange, you may pay more or receive less than
the current net asset value. Investment funds are not guaranteed,
their values change frequently and past performance may not be
repeated. Fund distribution levels and frequencies are not
guaranteed and may vary at the manager’s sole discretion.
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