Purpose Investments cuts fee on behavioural opportunities ETF

Dec 20th, 2019 | By | Category: Equities

Purpose Investments has announced a reduction in the management fee on the Purpose Behavioural Opportunities Fund (BHAV US) from 1.00% to 0.75%, effective 1 January 2020.

Som Seif Purpose Investments

Som Seif, CEO of Purpose Investments.

The actively managed ETF uses the foundations of behavioural economics and psychology in a bid to identify and profit from irrational, emotionally driven investor decisions.

The strategy invests predominantly in equity securities of North American companies and aims to generate long-term capital growth.

It deploys several strategies, each researched and designed to take advantage of either an investor behavioural bias/weakness or structural inefficiency in the market.

The portfolio is tilted to long equity holdings but can participate in short selling up to 20% of NAV. Options can be used to implement strategies or for hedging purposes.

Currently, the ETF holds 56 stocks which the managers have selected as potentially mispriced.

Som Seif, CEO of Purpose Investments, commented, “The Purpose Behavioral Opportunities Fund embodies who we are and what we do here at Purpose. The fund is a cutting-edge strategy that takes advantage of the latest research to give investors a truly unique way to generate returns. Keeping in line with our company values, we’re excited and proud to be able to reduce the fees to make this strategy more accessible to all Canadian investors.”

Craig Basinger, Portfolio Manager at Purpose Investments, added, “Everyone makes mistakes now and then when investing, as we are often influenced by our biases and emotions. With education and behavioural tools you can help mitigate these mistakes.  Alternatively, the Purpose Behavioural Opportunities Fund implements a number of unique strategies designed to profit from the behavioural mistakes of others.”

In addition to the management fee, the fund charges a performance fee of 10%.

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