PHEQ

PHEQ invests in an equity portfolio that aims to replicate the key fundamental attributes of a market-cap weighted index of the 500 largest, US companies. The equity portfolio does not expected to hold each constituent of the index, but rather, holds a sample of the index's holdings. The fund also utilizes an option overlay hedging strategy that seeks to mitigate losses experienced by investors, while foregoing some upside potential. To pursue this strategy, the fund will purchase and sell put options and sell call options, utilizing options based on the S&P 500 Index. This options strategy aims to mitigate downside risk after the first 10% decline, down to 30%, over a one-year period. PHEQ also holds options for multiple one-year periods staggered three-months apart. This results in a total of four separate defined outcome periods per year, each covering approximately 25% of the fund's exposure to the equity portfolio. Upon expiry, each option hedge structure will be rolled out to the same month-end in the next calendar year. Dividends received will be distributed every quarter. This fund may also incorporate tax loss harvesting within the long equity portfolio to maximize realization of losses.