Mackenzie to launch first mutual fund in Canada to use alt strategies

CSA’s new rules for alternative investments are expected this year, giving retail investors access to alternative strategies in mutual funds.

Read: Rules could make alternatives as easy to buy as mutual funds

Despite those rules not yet being final, Canadian investors’ wait is officially over: the Mackenzie Multi-Strategy Absolute Return Fund will be available on May 23. It’s the first mutual fund in Canada under NI 81-102 to use alternative strategies.

Read: Hurry up and learn while you wait for alternative investments

“Every other alternative product in this entire country right now is under offering memorandum,” says Michael Schnitman, senior vice-president of product at Mackenzie Investments. “We filed for exemptive relief to launch this product.”

The fund is consistent with CSA’s proposed rules, which allow shorting and leveraging within the mutual fund structure.

Mackenzie’s asset allocation team will use multiple non-traditional strategies for the fund, including long/short equity, opportunistic credit and global macro. The aim is to deliver a positive total return over a market cycle, regardless of ups and downs.

The fund’s MER consists of a management fee (1.15%) and an administration fee (0.15%), plus tax. Investors can access the fund with a minimum of $500.

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James Burron leaves AIMA, starts ‘complementary’ association

AIMA appoints Claire Van Wyk-Allan as its head of Canada

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