Purpose Investments Releases Annual Report With Actuarial Review for Its Longevity Pension Fund
28 Nov 2022.
LifeWorks review finds the expected long-term evolution of distribution levels remains robust.
Purpose Investments Inc. (“Purpose”) is happy to announce the release of the first Annual Report for its Longevity Pension Fund (“Longevity” or “the Fund”), the world’s first income-for-life mutual fund designed to provide income security for retired Canadians. The report comprises two main sections: the first is a recap of the Fund in 2022, prepared by Purpose, and the second is a detailed actuarial review conducted by LifeWorks (formerly Morneau Shepell).
“The Longevity Pension Fund addresses one of the most significant social challenges in Canada: income security for retirees,” says Fraser Stark, President, Longevity Retirement Platform at Purpose Investments. “I am pleased to announce that the fund is holding distribution levels steady for all cohorts in 2023, despite dealing with a very challenging market this year. Longevity is doing what it set out to do – enable Canadians to feel confident about their finances and truly enjoy retirement.”
To provide transparency and demonstrate Longevity’s ability to deliver on its objectives, Purpose developed an Income Policy that describes how distribution levels are managed and by how much distribution levels may be adjusted under different scenarios. By taking a holistic view of both assets and liabilities, the Fund is able to optimize the level of income paid to unitholders while balancing against the risk of depleting assets. Even under the worst-case scenario models, the Fund would adjust the distribution levels to ensure it is adequately funded to continue to pay income for life.
In their review, LifeWorks confirmed that the expected long-term evolution of distribution levels remains robust and broadly consistent with their previous review in February of this year. The results of both reviews further validate that Longevity could achieve the initial lifetime income rates and that those rates are expected to increase over time in the majority of cases.
To read the full Annual Report, please visit RetireWithLongevity.com/report2022.
About Longevity Pension Fund
The Longevity Pension Fund is the first product released as part of a new holistic retirement solutions platform launched by Purpose Investments. For more information about Longevity and Purpose’s mission to help Canadians redefine retirement with income for life, please visit RetireWithLongevity.com.
About Purpose Investments
Purpose Investments Inc. (“Purpose Investments”) is an asset management company with over $14 billion in assets under management. Purpose Investments has an unrelenting focus on client-centric innovation and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Unlimited, an independent technology-driven financial services company.
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Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. The prospectus contains important detailed information about the investment fund. Please read the prospectus before investing. There is no assurance that any fund will achieve its investment objective, and its net asset value, yield, and investment return will fluctuate from time to time with market conditions. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.
Income in the form of Fund distributions is not guaranteed, and the frequency and amount of distributions may increase or decrease. The Fund has a unique mutual fund structure. Most mutual funds redeem at their associated Net Asset Value (NAV). In contrast, redemptions in the decumulation class of the Fund (whether voluntary or at death) will occur at the lesser of NAV or the initial investment amount less any distributions received. You can always access the lesser of unpaid capital (initial value of your investment less any income payments made) or your net asset value. Fees may apply.
Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend on or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained in this document are based upon what Purpose Investments believe to be reasonable assumptions, Purpose Investments cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on the FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.