TORONTO, Feb. 26, 2019 (GLOBE NEWSWIRE) -- Purpose Investments Inc. (“Purpose Investments”) is pleased to announce the performance of Purpose Marijuana Opportunities Fund (the “Fund”) following the one-year anniversary of its inception. The Fund (NEO: MJJ) returned 53.43% over the period from January 31, 2018 to January 31, 2019, easily outperforming the Solactive North American Marijuana Index during the same period.
| Total Return (Jan 31/2018-Jan 31/2019) | |
| Purpose Marijuana Opportunities Fund | 53.43% |
| Solactive North American Marijuana Index | -1.54% |
“The performance of Purpose Marijuana Opportunities Fund shows exactly why we believe active management is the most optimized way to invest in the cannabis sector,” said Greg Taylor, Chief Investment Officer of Purpose Investments and Portfolio Manager for the Fund. “Passive investing in a new industry, such as marijuana, often means chasing or missing opportunities because the indexes are rebalancing much more slowly than the market itself is moving. On the other hand, active investing allows you to capitalize on all of the opportunities while properly managing risks through a variety of different strategies and tactics.”
Purpose Marijuana Opportunities Fund is Canada’s first actively managed cannabis ETF and the number one marijuana fund in Canada. The Fund takes an active approach to cannabis to navigate the many nuances that are part of the burgeoning industry, including volatility and industry consolidation. Active management in the space also allows the Fund to capture opportunities from initial public offerings, such as the successful IPO of Tilray, which are typically not accessible through passive indexes.
There is a relatively large number of cannabis stocks available on Canadian stock exchanges and the sector as a whole has caught the attention of investors. Some individual stocks have seen rapid and sharp movements and the sector as a whole has been highly volatile. Many investment professionals believe the sector has experienced periods of speculative mania, and may continue to, given that the way companies are analyzed post-legalization is still evolving as investors get a better grasp on company financial reports and fundamentals.
“MJJ was able to post stellar performance numbers for a few reasons,” said Taylor. “First, active management allows us to invest in thematic opportunities, such as the rapid product innovation happening now in the US. Second, our ability to buy in to highly anticipated IPOs ensures we capture gains from the best on-the-ground opportunities. And third, our ability to raise the Fund’s cash position as a defensive measure allows us to better manage risks in the volatile cannabis sector and protect our clients’ wealth.”
Purpose Marijuana Opportunities Fund is available as an exchange-traded fund on the NEO Exchange under the ticker “MJJ”. Listing the Fund on the NEO Exchange has allowed more flexibility to invest in global opportunities in the marijuana sector. The Fund is also available in a mutual fund format on Fundserv. For more information on the Fund, please visit: purposeinvest.com/mjj
About Purpose Investments
Purpose Investments is an asset management company with more than $6 billion 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 Financial, an independent technology-driven financial services company.
About NEO Exchange
Aequitas NEO Exchange Inc. is the operator of Canada’s next generation stock exchange, putting the needs of investors, businesses looking to raise capital and dealers first. Launched in March 2015, the NEO Exchange currently offers an innovative trading venue for all listed Canadian securities and value-added listings process for capital raising companies and investment products, focused on liquidity, transparency and efficiency. For more information, please visit: NEOstockexchange.com
For further information please contact:
Matt Padanyi
Purpose Investments Inc.
Tel: (877) 789-1517
Email: info@purposeinvest.com
All data sourced to Bloomberg unless otherwise noted.
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. The indicated rate of return is the historical annual compounded total return including changes in share/unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
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