Purpose Investments launches new U.S. Dollar Cash Management Fund

The fund invests in money market products to maintain liquidity

Purpose Investments launches new U.S. Dollar Cash Management Fund

Purpose Investments Inc. is pleased to announce the debut of the Purpose USD Cash Management Fund, which will begin trading on the Toronto Stock Exchange today under the ticker, MNU.U. This announcement marks the company's further development of its portfolio of market-beating cash solutions, according to a press release.

The Purpose USD Cash Management Fund is designed to navigate the current economic environment and convert high interest rates into alluring yields for investors with U.S. dollar cash allocations. It builds on the success of its Canadian dollar counterpart, Purpose Cash Management Fund, which launched in September 2022.

To achieve its primary goal of conserving capital and sustaining liquidity without taking on excessive risk, the fund invests in high-quality, short-term money market instruments denominated in US dollars.

“Against the backdrop of sticky inflation, which may keep interest rates higher for longer, prudent duration and robust risk and liquidity management for cash investments has become a key consideration for investors looking to earn an attractive return,” said Greg Taylor, Chief Investment Officer at Purpose.

For investors wishing to re-evaluate their cash and liquidity strategies without being bound by guaranteed investment certificates, The Purpose USD Cash Management Fund is a great alternative to conventional U.S. dollar cash options. Purpose is happy to offer investors Class A units, Class F units, and U.S. dollar-denominated ETF non-currency hedged units (TSX: MNU.U), all at a fixed $10.00 net asset value, having completed the issuance of the inaugural units of the Fund.

“Lately, many investors are positioned defensively or have elevated need for daily liquidity, keeping higher than usual cash balances. With record-high interest rates, investors are able to earn competitive returns on their cash investments for the first time in many years,” says Vlad Tasevski, Chief Operating Officer and Head of Product at Purpose. “The higher interest rates have made money market funds very attractive in the current market, in turn, increasing the minimum acceptable rate of return to invest in all other asset classes.”

Principal advantages of the fund include high levels of liquidity and capital preservation through the use of a diversified portfolio of short-term, top-notch money market instruments denominated in US dollars. Additionally, attractive yields are created to fulfill monthly current income requirements without taking on excessive credit risk.

Based on investor preferences, it trades in US dollars and is available as an ETF and mutual fund for convenience of usage. The fund also uses active management to modify the portfolio strategy to benefit from the shifting market conditions.

The Purpose USD Cash Management Fund is the newest addition to Purpose's well-known cash lineup, which also includes the Purpose US Cash Fund and the first high-interest savings ETF in the world. The cash products from Purpose are renowned for providing best-in-class returns that are much greater than conventional cash alternatives and are safely deposited with Canada's major banks.

With the launch of the Purpose USD Cash Management Fund in 2017, Purpose continues to reinvent cash investment by giving clients a new tool to optimize returns on their US dollar cash holdings. The initial target yearly net yield is predicted to be 5.01% at launch.

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