Income-for-life mutual fund announce increases for distribution levels in 2025
Purpose Investments Inc. (“Purpose”) is pleased to release the third 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 section, prepared by Purpose, provides a recap of the Fund’s performance in 2024; the second section is a detailed third-party actuarial review conducted by TELUS Health.
“In its third year of operation, the Longevity Pension Fund continues to stay true to its core objective of providing lifelong monthly income to Canadian retirees,” says Fraser Stark, President of Longevity Retirement Platform at Purpose Investments. “Moreover, I’m happy to share that with funding levels now well above target, our Income Policy calls for an increase in distributions across all five cohorts in 2025, reinforcing our ongoing commitment to secure our clients’ retirement futures."
The increase in distribution levels highlights the continued strength of our funding strategy and our focus on delivering value to retirees. The table below outlines the specific changes in annual distribution levels for each decumulation cohort:
| Decumulation Cohort (F-series) | 5 | 4 | 3 | 2 | 1 |
|---|---|---|---|---|---|
| 2024 annual distribution per unit | $6.150 | $6.150 | $6.500 | $6.900 | $7.400 |
| 2025 annual distribution per unit | $6.233 | $6.335 | $6.684 | $7.107 | $7.622 |
| Decumulation Cohort (A-series) | 5 | 4 | 3 | 2 | 1 |
|---|---|---|---|---|---|
| 2024 annual distribution per unit | $5.650 | $5.650 | $6.000 | $6.400 | $6.900 |
| 2025 annual distribution per unit | $5.726 | $5.820 | $6.170 | $6.592 | $7.107 |
In February 2022, Purpose developed an Income Policy that describes how distribution levels are managed and how much distribution levels may be adjusted under different scenarios. “We take a funding-level approach to managing the distribution levels,” says Fraser Stark. “Using our diversified, pension-style portfolio strategy, the Fund achieved an impressive 12-month net return of 16.19% as of September 30, 2024. And as reflected in TELUS’s actuarial review, we’re eager to continue to provide stable retirement income for our decumulation investors as we enter the new year.”
The actuarial review confirms that Purpose Investments follows the approach as described in the Income Policy, and that the long-term evolution of distribution levels is expected to rise in the majority of cases. The results of the Annual Review further validate that Longevity is on track to achieve its objective of providing lifetime income.
To read the full 2024 Annual Report and gain a comprehensive understanding of the Fund’s performance and strategies, please visit RetireWithLongevity.com/report2024.
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. is an asset management company with over $22 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.
For further information, please contact:
Keera Hart
Keera.Hart@kaiserpartners.com
905-580-1257
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.