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.
|MTD†||YTD %†||1 YR %||3 YR %||5 YR %||10 YR %||Inception %††|
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 *||TIF|
*Exchange: Cboe Canada Exchange
|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)|