We’re thrilled to announce a significant milestone for the Purpose Cash Management Fund (TSX: MNY), which has recently crossed $1 billion in assets under management. This achievement is a testament to investor confidence in our ETFs and the fund's competitive yields and high credit quality.

Since launching the world's first HISA ETF in 2013, we’ve been at the forefront of innovation in cash management, continually redefining the landscape with cutting-edge strategies. In this article, we’ll delve into the history of our approach, explore the unique strategy behind MNY, and discuss how we believe it's favourably positioned for investors in a potential rate-cutting environment. Join us as we celebrate this milestone and look ahead to the future of cash management with Purpose.

Key Takeaways

• In October 2024, the Purpose Cash Management Fund surpassed $1 billion in assets under management.
• Purpose is responsible for launching the world’s first high-interest savings account (HISA) fund in 2013 and, as of September 16, 2024, Purpose’s cash suite had roughly $6.3 billion in assets under management.
• With the path forward for central bank action more uncertain, MNY’s relatively longer duration compared with other cash management products is designed to make it a strategic addition to the cash sleeve of an investor’s portfolio.

Pioneering the Cash ETF Asset Class

HISA funds came into existence with our launch of Purpose High Interest Savings Fund (PSA) in October 2013. With PSA, our firm was the first in the world to offer retail investors a high-interest savings ETF that provided a safe and attractive yield option for their cash balances. Until then, these yields were generally only accessible to high-net-worth individuals.

Now, more than a decade later, as an investment vehicle, HISA funds have skyrocketed in popularity and garnered substantial assets. Consequently, the asset class has underwent a natural evolution and we’ve expanded our cash management suite to include active strategies and products that invest in traditional money market instruments and continuously manage their underlying portfolios in response to macroeconomic conditions.

In Q3 2022, we launched the Purpose Cash Management Fund to offer investors a new way to manage their cash and maximize their yield without allocating to deposit accounts.

The Unique Strategy Behind MNY

Since the fund’s launch, we’ve navigated a dynamic macroeconomic landscape. From aggressive rate hikes to recent rate cuts, the evolving global environment has been pivotal in shaping our strategy. Currently, we are observing signs of an economic slowdown, which strengthens our conviction that the Bank of Canada will likely continue easing interest rates to stimulate economic growth and foster job creation.

With the path forward for central bank action more uncertain, MNY's ability to actively manage duration, within the constraints of a money market fund, should continue to favourably position the Purpose Cash Management Fund against other cash ETFs.

At Purpose Investments, we recognize that money market instruments require vigilant attention to market movements. Even a single economic data point can introduce volatility, impacting pricing and market dynamics. As such, we remain focused on monitoring these shifts closely.

Our outlook remains positive. We believe the Bank of Canada will stay committed to its single mandate of maintaining stable inflation. While we anticipate further rate cuts, we are also mindful of potential risks from both domestic and international factors. As always, we are prepared to adapt, adjusting our positions in response to key economic indicators to ensure our portfolio remains resilient and opportunistic

As we navigate a potentially shifting interest rate environment, we believe MNY's strategic advantage lies in its ability to adapt to macroeconomic changes, positioning it as a smart choice for investors seeking stability and growth in their cash allocations. At Purpose, we’re committed to continuing our tradition of providing strong cash management solutions and driving innovation in the ETF space to help clients use their cash effectively and efficiently in any market environment.

To learn more about the cash solutions we offer, check out our cash management page here: https://www.purposeinvest.com/cash-management.

 — Purpose Investments

Investment fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.

The content of this document is for informational purposes only, and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security.  The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained in this document is not, and under no circumstances is it to be construed as, an offering memorandum, prospectus, advertisement or public offering of securities.  No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds.  Please read the prospectus before investing.  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.  Certain statements in this document are forward-looking.

Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” intend,” “plan,” “believe,” “estimate” or other similar expressions.  Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.  FLS are not guarantees of future performance and are by their nature based on numerous assumptions.  Although the FLS contained in this document are based upon what Purpose Investments and the portfolio manager believe to be reasonable assumptions, Purpose Investments and the portfolio manager cannot assure that actual results will be consistent with these FLS.  The reader is cautioned to consider the FLS carefully and not to place undue reliance on the FLS.  Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.