The firm has expanded its suite of alternative portfolio diversification options for retail investors
Mackenzie Investments has launched three new liquid alternative funds. Formulated to manage the negative effects of market volatility and enhance portfolio stability, the new funds join the Mackenzie Multi-Strategy Absolute Return Fund to assist clients in solving their investment challenges.
“We can now take a modern approach to portfolio construction that will create opportunities for stronger, better-diversified portfolios and outcomes for our investors,” Michael Schnitman, senior vice-president of Product at Mackenzie Investments, said in a statement. “By using liquid alternatives' winning combination of more diversification and lower correlation to the markets, we can help provide investors with improved portfolio stability with less reliance on market direction.”
Mackenzie’s new, global-focused solutions include:
- Mackenzie Credit Absolute Return Fund – a fixed-income portfolio diversifier, it seeks to deliver a positive total return over a rolling five-year period through investments in fixed-income securities;
- Mackenzie Global Macro Fund – a core portfolio diversifier, it seeks strong and diversified returns through long and short positions in equity securities, fixed-income securities, commodities, and/or currencies;
- Mackenzie Global Long/Short Equity Alpha Fund – an equity portfolio diversifier, it takes long and short positions in equities from issuers anywhere in the world
“With Mackenzie's new alternative mutual funds, advisors have more options to enhance an investor's portfolio to perform in today's volatile markets and any market scenario of tomorrow," said Mackenzie Investments President and CEO Barry McInerney. “Our alternative solutions open up new options for investors, so that they can be better positioned to reach their long-term financial goals.”
Canadian retail investors have been gaining lower-cost, liquid access to sophisticated alternative investments since the start of the year because of the Canadian Securities Administrators’ (CSA) recently implemented alternative funds framework.
Some have hailed such strategies as timely solutions to challenges such as financial-market volatility. However, others have downplayed that benefit, arguing that products offering exposure to uncorrelated assets are just a way to improve long-term risk-adjusted performance through diversification.
