The Landscape | Mackenzie Investments

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The Landscape

Mackenzie's Chief Investment Officer, Tony Elavia, discusses the benefits of the alternative asset class and how it has been successfully used by Institutional investors.

Show transcript

TONY ELAVIA, CIO: Canadian investors have always been able to invest in a wide set of stock, bond and balance funds, but what has been missing is the presence of alternatives.  By 'alternatives', I mean, investments in liquid securities representing bank loans, REITs, convertibles, exotic emerging markets, precious metals, mortgage-backed and private equity.  What is very fascinating about these alternative funds is that they give you the same attractive returns as stocks and bonds and balance funds, but they do it with a very low correlation.  So, you have an asset class that gives you same returns with low correlation.  A perfect recipe to combine the two.  The Mackenzie Diversified Alternatives Fund allows us to combine alternatives with traditional balance funds.

In case you are wondering who uses this technology, let me assure you that it has been used by institutional investors all over the world very successfully.  At home, CPP and Ontario teachers have been using this technology for decades.

Now, fortunately, Mackenize also happens to have Matthew Cardillo, who's the Portfolio Manager of this Fund.  And, Matt has a great background.  He has a degree in Economics and Mathematics and he has worked at the Federal Reserve Bank in the United States.  So, he has a Macro Economic perspective.  He is also very well-trained in quantitative methods.  As a result, he can analyze the returns and the correlations that all of these different alternative strategies bring so that when you add it to your set of balance funds, you have a very diversified strategy with a very high, what we call, 'sharp ratio'.  And, that the attraction of the Mackenzie Diversified Alternatives Fund.