PURPOSE CORE DIVIDEND FUND ETF SHARE PDF This document contains key information you should know about the Purpose Core Dividend Fund. You can find more detailed information about this exchangetraded fund (ETF) in its prospectus. The prospectus is available on Purpose Investments Inc. s website at www.purposeinvest.com, or by contacting Purpose Investments Inc. at info@purposeinvest.com, or by calling 1.877.789.1517. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. QUICK FACTS Date ETF started: September 3, 2013 Fund Manager: Purpose Investments Inc. Total Value on April 30, 2018: $478.85 million Portfolio Manager: Purpose Investments Inc. Management Expense Ratio (MER): 0.68% Distributions: Monthly TRADING INFORMATION PRICING INFORMATION (12 MONTHS ENDING APRIL 30, 2018) (12 MONTHS ENDING APRIL 30, 2018) Ticker Symbol: PDF Market price: $28.01 - $24.98 Exchange: Toronto Stock Exchange Net asset value (NAV): $28 - $24.97 Currency: CAD Average bid-ask spread: 0.06% Average daily volume: Number of days traded: 251 34815 units WHAT DOES THE ETF INVEST IN? The ETF seeks to provide shareholders with (i) long-term capital appreciation through investment in a portfolio of high quality North American dividend-paying equity securities; and (ii) monthly cash distributions. The ETF invests in an equally weighted portfolio of approximately 40 high quality North American dividend-paying equity securities based on a fundamental rules-based portfolio selection strategy that intends to create value and reduce risk over the investment period. The ETF s investment strategy systematically selects companies that have attractive dividend yield and the ability to grow their businesses and dividends for shareholders in the future. The portfolio is structured to reduce risk by using both quality and financial risk screens in order to exclude from the investment universe companies that have low financial strength and limited capacity for business and dividend growth. In addition, when appropriate, the portfolio may also use derivatives for both hedging and non-hedging purposes, including but not limited to options, futures contracts, forward contracts and swaps as permitted by Canadian securities laws, to hedge market exposure to protect capital, to generate income, hedge against losses from changes in the prices of the ETF s investments and from exposure to foreign currencies and/or as a substitute for direct investment. The ETF s portfolio holdings are rebalanced quarterly. Generally, a substantial portion of the foreign currency exposure within the portfolio will be hedged back to the Canadian dollar by using derivatives including currency forward contracts in the investment advisor s discretion. The charts below provide you with a snapshot of the ETF s investments on April 30, 2018. The ETF s investments will change. TOP 10 INVESTMENTS (APRIL 30, 2018) INVESTMENT MIX (APRIL 30, 2018) Company % of Net Asset Value Sector % of Net Asset Value 1. Camden Property Trust 2.68% Utilities 15.29% 2. Ford Motor Co 2.64% Financials 14.76% 3. Mid-America Apartment Communities Inc 2.64% Energy 14.55% 4. H&R Real Estate Investment Trust 2.63% Real Estate 13.01% 5. Northland Power Inc 2.63% Telecommunication Services 12.33% 6. American Electric Power Co Inc 2.61% Consumer Discretionary 10.10% 7. Keyera Corp 2.58% Consumer Staples 7.07% 8. Duke Energy Corp 2.55% Industrials 4.78% 9. Fortis Inc/Canada 2.55% Information Technology 2.46% 10. Liberty Property Trust 2.54% Health Care 2.45% Total percentage of top 10 investments 26.05% Material 2.44% Total number of investments 42 Money Market Funds 0.30% Cash & Cash Equivalents 0.69% Net Other Assets -0.23% Total 100.00% Page 1
HOW RISKY IS IT? The value of the ETF can go down as well as up. You could lose One way to gauge risk is to look at how much an ETF s returns change over time. This is called volatility. In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing RISK RATING Purpose Investments Inc. has rated the volatility of this ETF as medium. This rating is based on how much the ETF s returns have changed from year to year. It doesn t tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose For more information about the risk rating and specific risks that can affect the ETF s returns, see the sections entitled What are the risks of investing in the fund? and Who should invest in this fund? in the ETF s simplified prospectus. NO GUARANTEES ETFs do not have any guarantees. You may not get back the amount of money you invest. HOW HAS THE ETF PERFORMED? This section tells you how the ETF shares of the ETF have performed over the past 4 years. Returns are calculated using the ETF s net asset value (NAV) after expenses have been deducted. These expenses reduce the ETF s return. YEAR-BY-YEAR RETURNS This chart shows how ETF shares of the ETF performed in each of the past 4 years. The ETF dropped in value in 1 of the 4 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 20.0% 10.0% 0.0% -10.0% 17.8% -2.7% 16.9% 7.3% 2014 2015 2016 2017 PURPOSE CORE DIVIDEND FUND ETF SHARE BEST AND WORST 3-MONTH RETURNS This table shows the best and worst returns for the ETF shares of the ETF in a 3-month period over the past 4 years. The best and worst 3- month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending Best return 9.64% May 31, 2016 Worst return -7.22% February 28, 2018 If you invested $1,000 at the beginning of the period Your investment would rise to $1096.40 Your investment would drop to $927.75 AVERAGE RETURN A person who invested $1,000 in ETF shares of the ETF since inception would have $1492.83 as at April 30, 2018. This works out to an annual compound return of 8.98% TRADING ETFS ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: PRICING ETFs have two sets of prices: market price and net asset value (NAV). MARKET PRICE ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand and changes in the value of an ETF s investments can affect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF shares. The ask is the lowest price a seller is willing to accept if you want to buy ETF shares. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. NET ASSET VALUE (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document. ORDERS There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell shares at the current market price. A limit order lets you set the price at which you are willing to buy or sell shares. Page 2
TIMING In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. WHO IS THIS ETF FOR? Investors who: want capital growth over the long term want distributions payable to you monthly are investing for the medium and/or long term; and can tolerate medium risk. Don t buy this ETF if you need a steady source of income from your investment. A WORD ABOUT TAX In general, you ll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan such as a Registered Retirement Savings Plan, or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. HOW MUCH DOES IT COST? This section shows the fees and expenses you could pay to buy, own and sell ETF shares of the ETF. Fees and expenses including trailing commissions can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. BROKERAGE COMMISSIONS You may have to pay a commission every time you buy and sell ETF shares of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF EXPENSES You do not pay these expenses directly. They affect you because they reduce the ETF s returns for the ETF shares. As of December 31, 2017, the ETF s expenses were 0.74% of its value. This equals $7.40 for every $1,000 invested. PURPOSE CORE DIVIDEND FUND ETF SHARE Management expense ratio (MER) This is the total of the ETF s management fee and operating expenses. The manager waived some of the ETF s expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the ETF s trading costs. Annual rate (as a % of the ETF s value) 0.68% 0.06% ETF Expenses 0.74% TRAILING COMMISSIONS The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. WHAT IF I CHANGE MY MIND? Under securities law in some provinces and territories, you have the right to cancel your purchases within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. FOR MORE INFORMATION Contact Purpose Investments Inc. or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF s legal documents. 130 Adelaide St. West Suite 1700 Toronto, ON M5H 3P5 T: 416.583.3850 TF: 877.789.1517 F: 416.583.3851 www.purposeinvest.com info@purposeinvest.com Page 3
PURPOSE TACTICAL HEDGED EQUITY FUND ETF SHARE PHE This document contains key information you should know about Purpose Tactical Hedged Equity Fund. You can find more detailed information about this exchange-traded fund (ETF) in its prospectus. The prospectus is available on Purpose Investments Inc. s website at www.purposeinvest.com, or by contacting Purpose Investments Inc. at info@purposeinvest.com, or by calling 1.877.789.1517. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. QUICK FACTS Date ETF started: September 3, 2013 Fund Manager: Purpose Investments Inc. Total Value on April 30, 2018: $62.14 million Portfolio Manager: Purpose Investments Inc. Management Expense Ratio (MER): 0.96% Distributions: Annually in December (if any) TRADING INFORMATION PRICING INFORMATION (12 MONTHS ENDING APRIL 30, 2018) (12 MONTHS ENDING APRIL 30, 2018) Ticker Symbol: PHE Market price: $27.22 - $22.85 Exchange: TSX Net asset value (NAV): $27.27- $22.84 Currency: CAD Average bid-ask spread: 0.09% Average daily volume: Number of days traded: 204 2426 Units WHAT DOES THE ETF INVEST IN? The ETF seeks to provide shareholders with (i) consistent long-term capital appreciation with an attractive risk-adjusted rate of return investing in a portfolio of North American equities; and (ii) less volatility and low correlation to North American equity markets by hedging the ETF s exposure to overall market risk. The ETF uses a multi-factor, fundamental rules-based portfolio selection strategy to select long portfolio securities from a universe of North American equities. The selection strategy emphasizes factors that have shown to be effective at differentiating between strong and weak performing stocks including: fundamental change, valuation, growth and quality. The investment advisor tactically hedges up to 75% of the ETF s market exposure in order to reduce overall market exposure and the market risk associated with the ETF s portfolio investments. This hedging is intended to enable the ETF to take advantage of the expected value (or alpha) associated with the ETF s individual portfolio investments but with reduced risk that is associated with the overall market (or beta). Tactical hedging is implemented through the use of derivative instruments as permitted by Canadian securities laws including but not limited to market index futures contracts, options and swaps. In addition, when appropriate, the portfolio may also use derivatives for both hedging and non-hedging purposes, including but not limited to options, futures contracts, forward contracts and swaps as permitted by Canadian securities laws, to hedge market exposure to protect capital, to generate income, hedge against losses from changes in the prices of the ETF s investments and from exposure to foreign currencies and/or as a substitute for direct investment. The portfolio holdings are rebalanced monthly. Generally, a substantial portion of the foreign currency exposure within the portfolio will be hedged back to the Canadian dollar by using derivatives including currency forward contracts in the investment advisor s discretion. The charts below provide you with a snapshot of the ETF s investments on April 30, 2018. The ETF s investments will change. TOP 10 INVESTMENTS (APRIL 30, 2018) INVESTMENT MIX (APRIL 30, 2018) Company % of Net Asset Value Sector % of Net Asset Value 1. Macy's Inc 1.31% Industrials 11.21% 2. Best Buy Co Inc 1.30% Material 11.26% 3. Archer-Daniels-Midland Co 1.29% Energy 11.10% 4. Steel Dynamics Inc 1.29% Financials 11.13% 5. Ford Motor Co 1.28% Consumer Discretionary 11.39% 6. PACCAR Inc 1.28% Health Care 12.49% 7. Cummins Inc 1.28% Consumer Staples 10.13% 8. Campbell Soup Co 1.28% Information Technology 10.89% 9. Bunge Ltd 1.28% Telecommunication Services 0.00% 10. Cooper-Standard Holdings Inc 1.28% US Equity Index Futures 0.00% Total percentage of top 10 investments 12.87% Cash & Cash Equivalents 10.42% Total number of investments 77 Net Other Assets -0.01% Total 100.00% Page 1
HOW RISKY IS IT? The value of the ETF can go down as well as up. You could lose One way to gauge risk is to look at how much an ETF s returns change over time. This is called volatility. In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing RISK RATING Purpose Investments Inc. has rated the volatility of this ETF as medium. This rating is based on how much the ETF s returns have changed from year to year. It doesn t tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose For more information about the risk rating and specific risks that can affect the ETF s returns, see the sections entitled What are the risks of investing in the fund? and Who should invest in this fund? in the ETF s simplified prospectus. NO GUARANTEES ETFs do not have any guarantees. You may not get back the amount of money you invest. HOW HAS THE ETF PERFORMED? This section tells you how the shares of the ETF have performed over the past 4 years. Returns are calculated using the ETF s net asset value (NAV) after expenses have been deducted. These expenses reduce the ETF s return. YEAR-BY-YEAR RETURNS This chart shows how shares of the ETF performed in each of the past 4 years. The ETF dropped in value in 1 of the 4 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 20.0% 10.0% 0.0% -10.0% 3.5% 12.4% 10.2% -7.4% 2014 2015 2016 2017 PURPOSE TACTICAL HEDGED EQUITY FUND ETF SHARE BEST AND WORST 3-MONTH RETURNS This table shows the best and worst returns for the shares of the ETF in a 3-month period over the past 4 years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return Best return 9.87% Worst return -10.39% 3 months ending November 30, 2017 February 29, 2016 If you invested $1,000 at the beginning of the period Your investment would rise to $1098.74 Your investment would drop to $896.10 AVERAGE RETURN A person who invested $1,000 in ETF Units shares of the Fund since inception would have $1278.46 as at April 30, 2018. This works out to an annual compound return of 5.41% TRADING ETFS ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: PRICING ETFs have two sets of prices: market price and net asset value (NAV). MARKET PRICE ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand and changes in the value of an ETF s investments can affect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF shares. The ask is the lowest price a seller is willing to accept if you want to buy ETF shares. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. NET ASSET VALUE (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document. ORDERS There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell shares at the current market price. A limit order lets you set the price at which you are willing to buy or sell shares. Page 2
TIMING In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. WHO IS THIS ETF FOR? Investors who: want capital growth over the long term; want distributions payable to you annually; seek an attractive risk-adjusted rate of return; are investing for the medium and/or long term; and can tolerate medium risk. Don t buy this ETF if you need a steady source of income from your investment. A WORD ABOUT TAX In general, you ll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan such as a Registered Retirement Savings Plan, or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. HOW MUCH DOES IT COST? This section shows the fees and expenses you could pay to buy, own and sell ETF shares of the ETF. Fees and expenses including trailing commissions can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. BROKERAGE COMMISSIONS You may have to pay a commission every time you buy and sell ETF shares of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF EXPENSES You do not pay these expenses directly. They affect you because they reduce the ETF s returns for the ETF shares. As of December 31, 2017, the ETF s expenses were 1.06% of its value. This equals $10.60 for every $1,000 invested. PURPOSE TACTICAL HEDGED EQUITY FUND ETF SHARE Management expense ratio (MER) This is the total of the ETF s management fee and operating expenses. The manager waived some of the ETF s expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the ETF s trading costs. Annual rate (as a % of the ETF s value) 0.96% 0.10% ETF Expenses 1.06% TRAILING COMMISSIONS The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. WHAT IF I CHANGE MY MIND? Under securities law in some provinces and territories, you have the right to cancel your purchases within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. FOR MORE INFORMATION Contact Purpose Investments Inc. or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF s legal documents. 130 Adelaide St. West Suite 1700 Toronto, ON M5H 3P5 T: 416.583.3850 TF: 877.789.1517 F: 416.583.3851 www.purposeinvest.com info@purposeinvest.com Page 3
PURPOSE TACTICAL HEDGED EQUITY FUND ETF NON-CURRENCY HEDGED SHARE PHE.B The following is a summary of the principal features of the Purpose Tactical Hedged Equity Fund. You can find more detailed information about the Fund in the prospectus. The prospectus is available on Purpose Investments Inc. s website at www.purposeinvest.com, or by contacting Purpose Investments Inc. at info@purposeinvest.com, or by calling 1.877.789.1517. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. QUICK FACTS Date ETF started: April 29, 2014 Fund Manager: Purpose Investments Inc. Total Value on April 30, 2018: $62.14 million Portfolio Manager: Purpose Investments Inc. Management Expense Ratio (MER): 0.95% Distributions: Annually in December (if any) TRADING INFORMATION PRICING INFORMATION (12 MONTHS ENDING APRIL 30, 2018) (12 MONTHS ENDING APRIL 30, 2018) Ticker Symbol: PHE.B Market price: $26.57 - $22.41 Exchange: TSX Net asset value (NAV): $26.67 - $22.20 Currency: CAD Average bid-ask spread: 0.09% Average daily volume: Number of days traded: 188 2327 Units WHAT DOES THE ETF INVEST IN? The ETF seeks to provide shareholders with (i) consistent long-term capital appreciation with an attractive risk-adjusted rate of return investing in a portfolio of North American equities; and (ii) provide less volatility and low correlation to North American equity markets by hedging the ETF s exposure to overall market risk. The ETF uses a multi-factor, fundamental rules-based portfolio selection strategy to select long portfolio securities from a universe of North American equities. The selection strategy emphasizes factors that have shown to be effective at differentiating between strong and weak performing stocks including: fundamental change, valuation, growth and quality. The investment advisor tactically hedges up to 75% of the ETF s market exposure in order to reduce overall market exposure and the market risk associated with the ETF s portfolio investments. This hedging is intended to enable the ETF to take advantage of the expected value (or alpha) associated with the ETF s individual portfolio investments but with reduced risk that is associated with the overall market (or beta). Tactical hedging is implemented through the use of derivative instruments as permitted by Canadian securities laws including but not limited to market index futures contracts, options and swaps. In addition, when appropriate, the portfolio may also use derivatives for both hedging and non-hedging purposes, including but not limited to options, futures contracts, forward contracts and swaps as permitted by Canadian securities laws, to hedge market exposure to protect capital, to generate income, hedge against losses from changes in the prices of the ETF s investments and/or as a substitute for direct investment. The portfolio holdings are rebalanced monthly. The foreign currency exposure of the portfolio will not be hedged back to the Canadian dollar. The charts below provide you with a snapshot of the ETF s investments on April 30, 2018. The ETF s investments will change. TOP 10 INVESTMENTS (APRIL 30, 2018) INVESTMENT MIX (APRIL 30, 2018) Company % of Net Asset Value Sector % of Net Asset Value 1. Macy's Inc 1.31% Industrials 11.21% 2. Best Buy Co Inc 1.30% Material 11.26% 3. Archer-Daniels-Midland Co 1.29% Energy 11.10% 4. Steel Dynamics Inc 1.29% Financials 11.13% 5. Ford Motor Co 1.28% Consumer Discretionary 11.39% 6. PACCAR Inc 1.28% Health Care 12.49% 7. Cummins Inc 1.28% Consumer Staples 10.13% 8. Campbell Soup Co 1.28% Information Technology 10.89% 9. Bunge Ltd 1.28% Telecommunication Services 0.00% 10. Cooper-Standard Holdings Inc 1.28% US Equity Index Futures 0.00% Total percentage of top 10 investments 12.87% Cash & Cash Equivalents 10.42% Total number of investments 77 Net Other Assets -0.01% Total 100.00% Page 1
HOW RISKY IS IT? The value of the ETF can go down as well as up. You could lose One way to gauge risk is to look at how much an ETF s returns change over time. This is called volatility. In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing RISK RATING Purpose Investments Inc. has rated the volatility of this ETF as medium. This rating is based on how much the ETF s returns have changed from year to year. It doesn t tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose PURPOSE TACTICAL HEDGED EQUITY FUND ETF NON-CURRENCY HEDGED SHARE BEST AND WORST 3-MONTH RETURNS This table shows the best and worst returns for the shares of the ETF in a 3-month period over the past 4 years. The best and worst 3- month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return Best return 13% Worst return -8.72% 3 months ending November 30, 2017 February 29, 2016 If you invested $1,000 at the beginning of the period Your investment would rise to $1130.02 Your investment would drop to $912.77 AVERAGE RETURN A person who invested $1,000 in ETF shares of the ETF since inception would have $1296.66 as at April 30, 2018. This works out to an annual compound return of 6.71% TRADING ETFS ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: For more information about the risk rating and specific risks that can affect the ETF s returns, see the sections entitled What are the risks of investing in the fund? and Who should invest in this fund? in the ETF s simplified prospectus. NO GUARANTEES ETFs do not have any guarantees. You may not get back the amount of money you invest. HOW HAS THE ETF PERFORMED? This section tells you how the shares of the ETF have performed over the past 4 years. Returns are calculated using the ETF s net asset value (NAV) after expenses have been deducted. These expenses reduce the ETF s return. YEAR-BY-YEAR RETURNS This chart shows how shares of the ETF performed in each of the past 4 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 15.0% 10.0% 5.0% 0.0% 5.4% 7.3% 10.0% 4.3% 2014 2015 2016 2017 PRICING ETFs have two sets of prices: market price and net asset value (NAV). MARKET PRICE ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand and changes in the value of an ETF s investments can affect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF non-currency hedged shares. The ask is the lowest price a seller is willing to accept if you want to buy ETF non-currency hedged shares. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. NET ASSET VALUE (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document. ORDERS There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell shares at the current market price. A limit order lets you set the price at which you are willing to buy or sell shares. Page 2
TIMING In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. WHO IS THIS ETF FOR? Investors who: want capital growth over the long term; want distributions payable to you annually; seek an attractive risk-adjusted rate of return; are investing for the medium and/or long term; and can tolerate medium risk. Don t buy this ETF if you need a steady source of income from your investment. A WORD ABOUT TAX In general, you ll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan such as a Registered Retirement Savings Plan, or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. HOW MUCH DOES IT COST? This section shows the fees and expenses you could pay to buy, own and sell ETF shares of the ETF. Fees and expenses including trailing commissions can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. BROKERAGE COMMISSIONS You may have to pay a commission every time you buy and sell ETF shares of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF EXPENSES You do not pay these expenses directly. They affect you because they reduce the ETF s returns for the ETF shares. As of December 31, 2017, the ETF s expenses were 1.05% of its value. This equals $10.50 for every $1,000 invested. PURPOSE TACTICAL HEDGED EQUITY FUND ETF NON-CURRENCY HEDGED SHARE Management expense ratio (MER) This is the total of the ETF s management fee and operating expenses. The manager waived some of the ETF s expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the ETF s trading costs. Annual rate (as a % of the ETF s value) 0.95% 0.10% ETF Expenses 1.05% TRAILING COMMISSIONS The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. WHAT IF I CHANGE MY MIND? Under securities law in some provinces and territories, you have the right to cancel your purchases within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. FOR MORE INFORMATION Contact Purpose Investments Inc. or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF s legal documents. 130 Adelaide St. West Suite 1700 Toronto, ON M5H 3P5 T: 416.583.3850 TF: 877.789.1517 F: 416.583.3851 www.purposeinvest.com info@purposeinvest.com Page 3
PURPOSE INVESTMENTS INC PURPOSE MONTHLY INCOME FUND ETF Unit PIN This document contains key information you should know about Purpose Monthly Income Fund. You can find more detailed information about this exchange-traded fund (ETF) in its prospectus. The prospectus is available on Purpose Investments Inc. s website at www.purposeinvest.com, or by contacting Purpose Investments Inc. at info@purposeinvest.com, or by calling 1.877.789.1517. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. QUICK FACTS Date ETF started: September 6, 2013 Fund Manager: Purpose Investments Inc. Total Value on April 30, 2018: $24.63 million Portfolio Manager: Purpose Investments Inc. Management Expense Ratio (MER): 0.76% Distributions: Monthly TRADING INFORMATION PRICING INFORMATION (12 MONTHS ENDING APRIL 30, 2018) (12 MONTHS ENDING APRIL 30, 2018) Ticker Symbol: PIN Market price: $19.89 - $18.36 Exchange: TSX Net asset value (NAV): $19.82 - $18.47 Currency: CAD Average bid-ask spread: 0.16% Average daily volume: Number of days traded: 217 4655 Units WHAT DOES THE ETF INVEST IN? The ETF seeks to (i) maximize total return, consisting of dividend income and capital appreciation by tactically investing in a broad range of asset classes which may include equity, fixed income and inflation sensitive securities and cash; and (ii) provide shareholders with stable monthly cash distributions. The ETF is tactically managed across a broad range of asset classes including equities, fixed income, inflation sensitive securities and cash based on a risk-parity weighting methodology, with the goal of achieving a positive total return in diverse market environments while reducing portfolio risk. Risk-parity methodology or risk-parity based asset allocation strategy is broadly defined as a strategy that aims to spread portfolio risk, as measured by volatility of the rate of return on the portfolio, equally across all asset classes. In other words, each asset class in the portfolio is weighted such that all asset classes have the same marginal contribution to the total risk of the portfolio. The ETF may choose to (a) write cash covered put options in respect of the individual securities and market indices in order to receive premium income, reduce overall portfolio volatility and reduce the net cost of acquiring the securities subject to put options, (b) write covered call options on individual securities to seek to receive premium income, reduce overall portfolio volatility and enhance the portfolio s total return, (c) use warrants, ETFs and derivatives such as options, forward contracts, futures contracts and swaps for both hedging and non-hedging purposes to generate income, hedge against losses from changes in the prices of the ETF s investments and from exposure to foreign currencies and/or gain exposure to individual securities and markets instead of buying the securities directly and/or (d) hold cash or fixed income securities for strategic reasons or to provide cover for the writing of cash covered put options in respect of securities in which the ETF is permitted to invest. Options may be either exchange-traded or over-the-counter options. The portfolio holdings are rebalanced monthly. Generally, a substantial portion of the foreign currency exposure within the portfolio will be hedged back to the Canadian dollar by using derivatives including currency forward contracts in the investment advisor s discretion. The charts below provide you with a snapshot of the ETF s investments on April 30, 2018. The ETF s investments will change. TOP 10 INVESTMENTS (APRIL 30, 2018) INVESTMENT MIX (APRIL 30, 2018) Company % of Net Asset Value Sector % of Net Asset Value 1. Purpose High Interest Savings ETF 24.79% Fixed Income: 2. Purpose Tactical Investment Grade Bond Fund 14.41% Investment Grade Corporate Bonds 15.29% 3. BMO High Yield US Corporate Bond Hedged to CAD Index ETF 12.75% High Yield Bonds 12.75% 4. Purpose International Dividend Fund 7.66% Equities: 5. SPDR Gold Shares 2.67% Real Estate 7.57% 6. Cash & Cash Equivalents 1.63% Energy 5.51% 7. RioCan Real Estate Investment Trust 0.95% Materials 4.10% 8. H&R Real Estate Investment Trust 0.91% Utilities 3.86% 9. Purpose Short Duration Tactical Bond Fund 0.87% Financials 3.72% 10. Enbridge Inc 0.87% Telecommunication Services 3.12% Page 1
PURPOSE INVESTMENTS INC PURPOSE MONTHLY INCOME FUND ETF Unit PIN Total percentage of top 10 investments 67.52% Consumer Discretionary 2.55% Total number of investments 145 Consumer Staples 2.47% Industrials 1.21% Information Technology 0.63% Health Care 0.63% International Equities: International Equity ETF 7.66% Commodities: Commodity ETF 2.67% Money Market Funds: Money Market Funds 24.79% Other Assets: Put Option -0.05% Cash & Cash Equivalents 1.63% Net Other Assets -0.35% Total Long Positions 100.00% HOW RISKY IS IT? The value of the ETF can go down as well as up. You could lose One way to gauge risk is to look at how much an ETF s returns change over time. This is called volatility. In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing RISK RATING Purpose Investments Inc. has rated the volatility of this ETF as low to medium. This rating is based on how much the ETF s returns have changed from year to year. It doesn t tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose For more information about the risk rating and specific risks that can affect the ETF s returns, see the sections entitled What are the risks of investing in the fund? and Who should invest in this fund? in the ETF s simplified prospectus. NO GUARANTEES ETFs do not have any guarantees. You may not get back the amount of money you invest. HOW HAS THE ETF PERFORMED? This section tells you how the shares of the ETF have performed over the past 4 years. Returns are calculated using the ETF s net asset value (NAV) after expenses have been deducted. These expenses reduce the ETF s return. YEAR-BY-YEAR RETURNS This chart shows how shares of the ETF performed in each of the past 4 years. The ETF dropped in value in 1 of the 4 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% BEST AND WORST 3-MONTH RETURNS This table shows the best and worst returns for the shares of the ETF in a 3-month period over the past 4 years. The best and worst 3- month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending Best return 7.21% April 29, 2016 Worst return -5.08% 4.7% -4.4% September 30, 2015 11.3% 3.4% 2014 2015 2016 2017 If you invested $1,000 at the beginning of the period Your investment would rise to $1072.09 Your investment would drop to $949.21 AVERAGE RETURN A person who invested $1,000 in ETF Units shares of the Fund since inception would have $1174.79 as at April 30, 2018. This works out to an annual compound return of 3.52% Page 2
TRADING ETFS ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: PRICING ETFs have two sets of prices: market price and net asset value (NAV). MARKET PRICE ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand and changes in the value of an ETF s investments can affect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF units. The ask is the lowest price a seller is willing to accept if you want to buy ETF units. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. NET ASSET VALUE (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document. ORDERS There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell units at the current market price. A limit order lets you set the price at which you are willing to buy or sell units. TIMING In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. WHO IS THIS ETF FOR? Investors who: want capital growth over the long term want distributions payable to you monthly are investing for the medium and/or long term can tolerate low to medium risk Don t buy this ETF if you need a steady source of income from your investment. A WORD ABOUT TAX In general, you ll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan such as a Registered Retirement Savings Plan, or a Tax-Free Savings Account. PURPOSE INVESTMENTS INC PURPOSE MONTHLY INCOME FUND ETF Unit Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. HOW MUCH DOES IT COST? This section shows the fees and expenses you could pay to buy, own and sell ETF shares of the ETF. Fees and expenses including trailing commissions can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. BROKERAGE COMMISSIONS You may have to pay a commission every time you buy and sell ETF shares of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF EXPENSES You do not pay these expenses directly. They affect you because they reduce the ETF s returns for the ETF shares. As of December 31, 2017, the ETF s expenses were 1.12% of its value. This equals $11.20 for every $1,000 invested. Management expense ratio (MER) This is the total of the ETF s management fee and operating expenses. The manager waived some of the ETF s expenses. If it had not done so, the MER would have been higher. Trading expense ratio (TER) These are the ETF s trading costs. Annual rate (as a % of the ETF s value) 0.76% 0.36% ETF Expenses 1.12% TRAILING COMMISSIONS The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. WHAT IF I CHANGE MY MIND? Under securities law in some provinces and territories, you have the right to cancel your purchases within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. Page 3
FOR MORE INFORMATION Contact Purpose Investments Inc. or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF s legal documents. PURPOSE INVESTMENTS INC PURPOSE MONTHLY INCOME FUND ETF Unit 130 Adelaide St. West Suite 1700 Toronto, ON M5H 3P5 T: 416.583.3850 TF: 877.789.1517 F: 416.583.3851 www.purposeinvest.com info@purposeinvest.com Page 4
PURPOSE TOTAL RETURN BOND FUND ETF SHARE PBD This document contains key information you should know about Purpose Total Return Bond Fund. You can find more detailed information about this exchangetraded fund (ETF) in its prospectus. The prospectus is available on Purpose Investments Inc. s website at www.purposeinvest.com, or by contacting Purpose Investments Inc. at info@purposeinvest.com, or by calling 1.877.789.1517. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. QUICK FACTS Date ETF started: September 4, 2013 Fund Manager: Purpose Investments Inc. Total Value on April 30, 2018: $101.24 million Portfolio Manager: Purpose Investments Inc. Management Expense Ratio (MER): 0.83% Distributions: Monthly TRADING INFORMATION PRICING INFORMATION (12 MONTHS ENDING APRIL 30, 2018) (12 MONTHS ENDING APRIL 30, 2018) Ticker Symbol: PBD Market price: $19.89 - $18.57 Exchange: TSX Net asset value (NAV): $19.88 - $18.57 Currency: CAD Average bid-ask spread: 0.22% Average daily volume: Number of days traded: 251 19674 units WHAT DOES THE ETF INVEST IN? The ETF seeks to achieve a positive total return in diverse market environments over time by tactically allocating its assets among a broad range of fixed income securities, including government debt, investment grade corporate debt and high yield debt. The ETF obtains exposure primarily to a portfolio of fixed income securities including government debt, investment grade corporate debt, notes and high yield debt instruments. The ETF primarily invests in a portfolio of North American fixed income securities but may also invest globally. The ETF may invest in (i) derivatives such as options, futures contracts, forward contracts, swaps and credit derivatives and/or (ii) underlying funds, in each case as permitted by Canadian securities laws, to achieve its investment objectives. In addition, when appropriate, the may also use derivatives for both hedging and non-hedging purposes, including but not limited to options, futures contracts, forward contracts and swaps as permitted by Canadian securities laws, to hedge market exposure to protect capital, to generate income, hedge against losses from changes in the prices of the fund s investments and from exposure to foreign currencies and/or as a substitute for direct investment. The portfolio holdings are rebalanced monthly. Generally, a substantial portion of the foreign currency exposure within the portfolio will be hedged back to the Canadian dollar by using derivatives including currency forward contracts in the investment advisor s discretion. The charts below provide you with a snapshot of the ETF s investments on April 30, 2018. The ETF s investments will change. TOP 10 INVESTMENTS (APRIL 30, 2018) INVESTMENT MIX (APRIL 30, 2018) Company % of Net Asset Value Sector % of Net Asset Value 1. BMO High Yield US Corporate Bond Hedged to CAD Index ETF 35.95% Cash & Cash Equivalents 36.01% 2. Purpose Tactical Investment Grade Bond ETF 19.40% High Yield Bonds s 35.95% 3. BMO Mid Federal Bond Index ETF 4.95% Investment Grade Bonds 23.08% 4. Purpose Short Duration Tactical Bond ETF 3.68% Government Bonds 4.95% 5. Cash & Cash Equivalents 36.01% Total 100.00% Total percentage of top 10 investments 100.00% Total number of investments 5 HOW RISKY IS IT? The value of the ETF can go down as well as up. You could lose One way to gauge risk is to look at how much an ETF s returns change over time. This is called volatility. In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They Page 1