Purpose Premium Yield Fund (PYF-T)

This fund writes put options. This relies on the management as you don’t want to be made long a group of weak stocks. This is a short volatility strategy. You just need to know what your strategy is.

He loves the strategy. They are consistently taking in yield in the fund and then pay out 6%. The US exposure has hurt them a little over the last year. Option strategy premiums are lower at the moment.

He likes a lot of the stuff that Purpose has been doing. They are very creative in some of the things they do. Involves a lot of quantitative stuff and Covered Calls on various equities. Slightly riskier, but he would certainly be a buyer. Wouldn’t have it as his total income, but would have it as a portion. When looking at yield, you want to have several different things to look at.

An excellent way of sitting on cash. Between now and mid-October, we have volatile markets seasonally and this is a cash equivalent.