Ninepoint Target Income Fund
A Simple Alternative:
A single solution that eliminates the need to manage the multiple maturities and expiries of structured notes, while providing daily liquidity.
Targeted Distribution:
Traditional Mutual Fund structure available to all investors, offering a 6% target distribution.*
Supported by RBC QiS:
Leveraging RBC Capital Markets’ diversified, systematic put selling strategies on multiple equity indices.
Investment Approach
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 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.
Sector Allocation as of 03/28/2024
| Sector | Weight |
|---|---|
| Short Term Corporate Bonds | 52.14 |
| Commercial Paper | 31.9 |
| Treasury Bills | 7.46 |
| Banker's Acceptance | 6.88 |
| Cash And Cash Equivalents | 1.63 |
| Derivatives | 0 |
Sector Allocation (Notional) as of 03/28/2024
| Sector | Weight |
|---|---|
| Tr Rbc United States 85% Put Index | 32.4 |
| Tr Rbc United States 80% Put Index | 29.23 |
| Net Cash And Equivalents | 13.32 |
| Tr Rbc Europe 80% Put Index | 5.24 |
| Sep24 Spx P @ 3775.000000 | 3.86 |
| Jun24 Spx P @ 3750.000000 | 3.83 |
| Dec24 Spx P @ 4000.000000 | 2.72 |
| Tr Rbc Canada 85% Put Index | 2.16 |
| Tr Rbc Europe 85% Put Index | 1.56 |
| Tr Rbc Europe 75% Put Index | 1.5 |
| Mar25 Spx P @ 4000.000000 | 1.36 |
| Dec24 Spx P @ 3750.000000 | 1.28 |
| Tr Rbc United States 90% Put Index | 0.8 |
| Tr Rbc Canada 90% Put Index | 0.38 |
| Tr Rbc United States 75% Put Index | 0.23 |
| Tr Rbc United States 70% Put Index | 0.16 |
Top Ten Holdings as of 03/28/2024
| Issuer Name |
|---|
| Athene Global Funding 1.25% 04/09/2024 |
| Bell Mts Inc 4% 05/27/2024 |
| Bruce Power Lp 3% 06/21/2024 |
| Canada (Government Of) 06/20/2024 |
| Enbridge Inc 04/19/2024 |
| Epcor Utilities Inc 0.982% 06/28/2024 |
| Royal Bank Of Canada 05/09/2024 |
| Telus Corporation 3.35% 04/01/2024 |
| Transcanada Pipelines Ltd 5.6% 06/09/2024 |
| Vw Credit Canada Inc 04/08/2024 |
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
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An Alternative to Structured Notes
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Investment Team
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Regulatory Documents
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Ticker & Fund Codes
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Fund Details
Fund Type Equity Income Fund Inception Date August 2, 2022 Distributions* 6% NAV/unit annually Registered Tax Plan Status Eligible Management Fee Series A: 1.60%
Series ETF: 0.60%
Series F: 0.60%
Series S: 1.30%
Series SF: 0.30%Minimum Initial Investment $500 Minimum Subsequent Investment $25 Minimum Investment Term 20 days (1.5% penalty) Redemptions Daily Valuations Daily CUSIP TIF: 65446C108 (Cboe)
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 March 31, 2024. Top ten holdings, fixed income exposure and put selling index allocation (notional) as at March 31, 2024. Top ten holdings based on % of net asset value.
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 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 shares of the Fund for the period ended March 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.
Ninepoint Partners LP: Toll Free: 1.866.299.9906. DEALER SERVICES: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540
Are You An Accredited Investor?
An investment in this Fund requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in this type of an investment. Investors in the Fund must be prepared to bear such risks for an extended period of time and should review suitability with their Investment Advisor.
The minimum subscription amount is $150,000.00 in all jurisdictions, unless you meet the definition of "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.
If you meet the definition "accredited investor" (see below), you may invest a minimum of $25,000. Please consult the Offering Memorandum to determine your qualification status. Investment Advisors should consult their company's internal policies.
The Subscriber, or one or more beneficial purchasers for whom the Subscriber is acting, is (i) a resident of, or the purchase and sale of securities to the Subscriber is otherwise subject to the securities legislation of one of the following: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, North West Territories, or Nunavut, and the Subscriber is (and will at the time of acceptance of the Subscription be) an accredited investor within the meaning of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") because the Subscriber is one of the following:
| (a) | a Canadian financial institution, or a Schedule III bank; |
| (b) | the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada); |
| (c) | a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary; |
| (d) | a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador); |
| (e) | an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d); |
| (f) | the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada; |
| (g) | a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec; |
| (h) | any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; |
| (i) | a pension fund that is regulated by the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada; |
| (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000; |
| (k) | an individual whose net income before taxes exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; (Note: If individual accredited investors wish to purchase through wholly-owned holding companies or similar entities, such purchasing entities must qualify under section (t) below, which must be initialled.) |
| (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000; |
| (m) | a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; |
| (n) | an investment fund that distributes or has distributed its securities only to:
|
| (o) | an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt; |
| (p) | a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be; |
| (q) | a person acting on behalf of a fully managed account managed by that person, if that person:
|
| (r) | a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded; |
| (s) | an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function; |
| (t) | a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors; |
| (u) | an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser, or; |
| (v) | a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor. |
Toronto, Ontario M5J 2J1 Canada