Ninepoint Target Income Fund - Series F

Overview

A defensive equity income strategy that employs cash secured put selling to help solve income portfolio challenges.

  • Defensive Strategy

    Defensive Strategy

    A single solution that eliminates the need to manage the multiple maturities and expiries of structured notes, while providing daily liquidity.

  • Accessible & Differentiated Income

    Accessible & Differentiated Income

    Convenient Mutual Fund structure offering a 6%* target income distribution, generated by a cash secured put selling strategy.

  • Powered by RBC Capital Markets

    Powered by RBC Capital Markets

    Partnership with RBC Capital Markets QiS implements systematic put selling strategies on multiple equity indices.

Fund Objective

The investment objective of the Ninepoint Target Income Fund is to seek 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.

Reasons to own the fund

  1. Income Diversification: Provides a differentiated income stream via put option premiums to complement traditional income portfolios.
  2. Defensive Equity Income Strategy: Generates an annual 6%* target income distribution with potential for moderate downside protection in market declines.
  3. Active Risk Management: Ability to manage risk and index exposures to achieve investment goals.

 

Investment Team

  • Colin Watson
    Portfolio Manager
    Colin Watson
    Portfolio Manager
    Colin Watson's background spans across equities, asset allocation & derivative-based strategies. Prior to Ninepoint Partners, Colin worked as a Portfolio Manager at IMCO on a team responsible for overseeing IMCO’s $26B public equity allocation and deploying derivatives-based strategies for IMCO’s public asset allocation strategy. Prior to IMCO, Colin worked at Ninepoint Partners on equity selection & options-based overlays. Colin holds a Bachelor of Commerce Degree from McMaster Unive...
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  • Etienne Bordeleau-Labrecque, MBA, CFA
    Vice President, Portfolio Manager
    Etienne Bordeleau-Labrecque, MBA, CFA
    Vice President, Portfolio Manager
    Etienne Bordeleau-Labrecque is Vice President, Portfolio Manager at Ninepoint Partners. With over 10 years of expertise across equities, interest rates and credit, he now focuses primarily on the firm’s Fixed Income franchise. Prior to Ninepoint’s formation, Etienne was with Sprott Asset Management (SAM) from 2012, where he worked as an Analyst and Associate Portfolio Manager, covering North American equities in the financial, energy, utility and health care sectors. From 2008 to 2011, Étienn...
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Performance

Compound Returns

As at 5/31/2024 (Series F) NPP5002
Compound Returns
MTD % YTD % 1Y % 3Y % 5Y % 10Y % Inception %
0.19
As at 6/14/2024
2.49 6.10 - - - 6.24
Inception Date: August 2, 2022

Distribution Yields

(Series F) NPP5002
Distributions Per Unit Annualized Distribution Yield 12 Month Trailing Yield Distribution Frequency Record Date
$0.05002 6.00% 6.09% Monthly 5/31/2024

Growth of $10,000 Invested

As at 5/31/2024 (Series F) NPP5002

Risk Tolerance

  • Low
  • Low - Med
  • Medium
  • Med - High
  • High

Portfolio

As at 5/31/2024

Sector Allocation

Sector Allocation
Sector Weight %
Short Term Corporate Bonds 55.68
Commercial Paper 29.96
Treasury Bills 8.96
ABS 4.39
Cash and Cash Equivalents 0.91
Derivatives 0.1

Sector Allocation (Notional)

Sector Allocation (Notional)
Sector Weight %
TR RBC United States 85% PUT INDEX 35.69
TR RBC United States 80% PUT INDEX 29.08
TR RBC Europe 80% PUT INDEX 6.13
SEP24 SPX P @ 3775.000000 4.5
JUN24 SPX P @ 3750.000000 4.47
Net Cash and Equivalents 4.33
DEC24 SPX P @ 4000.000000 3.18
MAR25 SPX P @ 4000.000000 3.18
TR RBC Canada 85% PUT INDEX 2.51
TR RBC Europe 85% PUT INDEX 1.84
TR RBC Europe 75% PUT INDEX 1.76
DEC24 SPX P @ 3750.000000 1.49
TR RBC United States 90% PUT INDEX 0.94
TR RBC Canada 90% PUT INDEX 0.45
TR RBC United States 75% PUT INDEX 0.27
TR RBC United States 70% PUT INDEX 0.19

Top Ten Holdings

Issuer Name
Canada (Government Of) 06/20/2024
Transcanada Pipelines Ltd 5.6% 06/09/2024
Bruce Power Lp 3% 06/21/2024
Epcor Utilities Inc 0.982% 06/28/2024
Royal Bank Of Canada 2.352% 07/02/2024
Canadian Imperial Bank Of Commerce 2.35% 08/28/2024
Bank Of Nova Scotia 2.49% 09/23/2024
Federation Des Caisses Desjardins Du Quebec 2.417% 10/04/2024
Volkswagen Credit Canada Inc 06/04/2024
National Bank Of Canada 08/02/2024

Statistical Analysis

As at 5/31/2024 (Series F) NPP5002
Statistics Fund
Cumulative Return 11.71%
Growth of 10K $11,171.00
Sharpe Ratio 1.36
Standard Deviation 2.35%
Total Down Months 1
Total Positive Months 20

Facts, Fees & Fund Codes

Facts
Facts
Fund Type
Equity Income Fund
Inception Date
August 2, 2022
Registered Tax Plan Status
Eligible
Distributions
6% NAV/unit annually
Minimum Initial Investment
$500 
Minimum Subsequent Investment
$25 
Minimum Investment Term
20 days (1.5% penalty)
Redemptions
Daily
Valuations
Daily
CUSIP
TIF: 65446C108 (Cboe)
Fees
Fees
Management Fee
Series A: 1.60%
Series ETF: 0.60%
Series F: 0.60%
Series S: 1.30%
Series SF: 0.30%
Fund Codes
Ticker & Fund Codes
Series A NPP5001
Series ETF * TIF
Series F NPP5002
Series S NPP5004
Series SF NPP5005
Series A $USD NPP1023
Series F $USD NPP1024
*Exchange: Cboe Canada Exchange
Closed to new purchases

Education

A Convenient Solution For Generating Income With Options

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.

Selling Put Options to Generate Income

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

An Alternative to Structured Notes

Documents

All returns and fund details are a) based on Series F shares; b) net of fees; c) annualized if period is greater than one year; d) as at 4/30/2024, e) 2022 annual returns are from 08/02/22 to 12/31/22. Top ten holdings, sector allocation and geographic allocation as at 4/30/2024. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.

The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the investment fund or returns on investment in the investment fund.

*The monthly distribution amount may be adjusted by the Manager without notice throughout the year as market conditions change. Monthly distributions will be comprised of net income, net realized capital gains and/or return of capital. Any net income and/or net realized capital gains earned by the Fund in excess of the monthly distribution will be distributed to unitholders annually in December.

The Fund is generally exposed to the following risks: Capital depletion risk; Concentration risk; Currency risk; Cybersecurity risk; Derivatives risk; Foreign investment risk; Inflation risk; Interest rate risk; Liquidity risk; Market risk; Securities lending, repurchase and reverse repurchase transactions risk; Series risk; Short selling risk; Substantial securityholder risk; Tax risk. Additional risks associated with an investment in ETF Series securities of this Fund include: Absence of an active market for ETF Series risk; Halted trading of ETF Series risk; Trading price of ETF Series risk.

Ninepoint Partners LP is the investment manager to a number of 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 rates of return for series F units of the Funds for the period ended 4/30/2024 are based on the historical annual compounded total returns including changes in unit value and reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.

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.

Ninepoint Partners LP: Toll Free: 1.866.299.9906. Dealer Services: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540