The Purpose Conservative Income Fund (PRP.TO) is designed to deliver both consistent dividend income and capital appreciation while actively managing portfolio volatility. This is achieved through a multi-asset investment approach, enhanced by an options overlay strategy and duration hedging. Its investment decisions are guided by systematic, rules-based selection processes. For equity holdings, the fund rigorously screens for companies exhibiting strong quality, reliable dividend payouts, and lower volatility. In the fixed income portion, assets are strategically allocated across both investment-grade and high-yield government securities. A key component of its risk management is an options collar strategy applied to equities, specifically involving writing call options and purchasing put options on the S&P 500 index. For its fixed income exposure, the fund employs option writing on 10-year U.S. Treasury bonds. These options can be either exchange-traded or over-the-counter (OTC). To further enhance returns, the fund has the discretion to engage in securities lending. Strict limits apply to this activity: no more than 50% of the fund's net asset value (NAV) may be committed, and borrowers are required to post collateral equivalent to at least 102% of the loaned securities' value. Portfolio reconstitution and rebalancing are performed periodically at the sole discretion of the investment advisor.

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Purpose Conservative Income Fund

The fund invests in various asset classes that provides dividend income and capital appreciation, while reducing portfolio volatility via options overlay and duration hedging. The fund uses rules-based portfolio selection strategies. For equities, the fund will screen for quality, dividends and volatility while for bonds the allocation is spread out across investment grade and high yield government securities. The options collar strategy for equities, writes calls and buy puts on the S&P 500 while on fixed income securities, it writes options on 10-year US bonds. Options may be either exchange-traded or OTC options. The fund may enter into securities lending to generate income. PRP may not commit more than 50% of its NAV to securities lending and the borrower must provide collateral worth at least 102% of the value of the securities loaned. PRP may be reconstituted and rebalanced at the discretion of the investment advisor.

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