TORONTO – MAY 2, 2018 – Mackenzie Investments today announced it is the first to bring the innovation of an absolute return fund to Canadian retail investors, based on the regulators’ alternative framework proposal for conventional mutual funds. The Mackenzie Multi-Strategy Absolute Return Fund will deliver innovative strategies that seek a positive total return over a market cycle, regardless of the ups and downs.
“Absolute return mutual funds challenge the conventional approach to investing, and Mackenzie is proud to be the first to bring this non-traditional solution to Canadian retail investors,” said Michael Schnitman, Senior Vice-President, Product at Mackenzie Investments. “The new fund has the added benefits of being transparent, highly liquid and closely regulated under National Instrument 81-102.”
Until now, most alternative investments in the Canadian market were limited to high net worth and institutional investors through select advisors. Because of those limitations, the majority of retail investors were unable to access absolute return strategies and the benefits of investing in them to complement their traditional portfolios. This fund will be available for sale to the IIROC distribution channel.
While traditional relative return mutual funds tend to move in tandem with the markets, alternatives such as Mackenzie’s Multi-Strategy Absolute Return Fund offer the potential for a lower volatility experience by using a modern, multi-strategy approach.
An alternative fund offers a one-stop solution for retail investors. By diversifying in new alternative ways, investors can increase portfolio stability by adding a component to their portfolio that is not correlated with the markets and can experience a smoother ride by leveraging sophisticated risk allocation methodology.
“As we’ve seen in the United States, absolute return strategies have demonstrated strong growth to become an important part of diversified asset allocation, thanks to their mass appeal for investors seeking to limit volatility and anyone looking to complement their portfolio with an innovative strategy,” adds Schnitman. “It’s time for Canadians to experience those same benefits and Mackenzie is excited to be at the forefront of this next chapter in our mutual fund industry.”
To manage this new product, Mackenzie brings together leaders with decades of robust experience managing institutional alternative strategies, including Asset Allocation, Fixed Income and Systematic Strategies teams. Mackenzie’s Asset Allocation team will holistically and dynamically allocate among multiple non-traditional strategies including long/short equity, opportunistic credit and global macro.
“Mackenzie is proud to be a true pioneer in this space, delivering this strategy to mainstream investors and helping them achieve their financial objectives,” said Barry McInerney, President and CEO, Mackenzie Investments.
About Mackenzie Investments
Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $126.9 billion in assets under management as of March 31, 2018, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with $155.8 billion in total assets under management as of March 31, 2018.
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