Diversification: Ninepoint will initiate RBC income solutions on multiple broad-based global indices to reduce the risk of having only one strike, index or maturity dictate returns.
Laddered Strikes & Maturities: The rules-based put selling strategy rolls strikes on a continuous quarterly basis.
Active Risk Management: Ability to optimize risk and index exposures to target distribution.
Cash Management Expertise: Access to institutional cash management solutions to generate additional yield.
The Ninepoint Target Income Fund seeks to provide unitholders with stable, monthly distributions and lower volatility than a direct investment in the broad equity markets by investing primarily in a diversified portfolio of equity index based investments that generates income and using derivatives strategies to moderate the market volatility of those investments.
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Ninepoint Target Income Fund is a defensive equity income strategy that targets similar returns to many structured note investments in an accessible mutual fund structure.
A put option is an insurance contract protecting buyers against declines in the price of a security over a specified period. This insurance has a defined deductible up until a price or “strike price”, that offers a buffer to the seller against losses. While the buyer of a put option seeks to profit from price declines, a put selling strategy can be utilized to generate income through the ‘insurance premiums’ earned by selling put options to buyers. This approach, used in the Ninepoint Target Income Fund, can be structured across various indices and maturity dates to diversify risk, aiming to produce stable income and potentially provide a buffer against downside risk.
Example: Continuous investment and diversification of S&P 500 put options across time with RBC Income Solutions
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|Series ETF *
*Exchange: Cboe Canada Exchange
|Equity Income Fund
|August 2, 2022
|6% NAV/unit annually
|Registered Tax Plan Status
|Series A: 1.60%
Series ETF: 0.60%
Series F: 0.60%
Series S: 1.30%
Series SF: 0.30%
|Minimum Initial Investment
|Minimum Subsequent Investment
|Minimum Investment Term
|20 days (1.5% penalty)
|TIF: 65446C108 (Cboe)
1All returns and fund details are a) based on Series F and Series SF shares; b) net of fees; c) annualized if period is greater than one year; d) as at January 31, 2024.
Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for Series F and Series SF shares of the Fund for the period ended January 31, 2024 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
The Ninepoint Target Income Fund is generally exposed to the following risks. See the simplified prospectus of the Fund for a description of these risks: Absence of an active market for ETF Series risk; Concentration risk; Currency risk; Derivatives risk; Foreign investment risk; Halted trading of ETF Series risk; Inflation risk; Interest rate risk; Liquidity risk; Market risk; Securities lending, repurchase and reverse repurchase transactions risk; Series risk; Short selling risk; Substantial unitholder risk; Tax risk and Trading price of ETF Series risk.
Ninepoint Partners LP: Toll Free: 1.866.299.9906. DEALER SERVICES: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540