Firms announce new liquid alternative offerings

One is expanding its shelf while another makes its debut in the Canadian liquid-alt space

Firms announce new liquid alternative offerings

Dynamic Funds and Russell Investments Canada have announced two new products that will add to the expanding liquid-alternative options for Canadian retail investors.

The third liquid-alt offering from Dynamic Funds, the Dynamic Real Estate & Infrastructure Income II Fund, offers investors the chance to diversify their portfolios with exposure to real assets, such as real estate and infrastructure securities, as well as a monthly income stream.

“Since the launch of our initial two liquid alternative funds last year, advisors have expressed a growing interest in these products for providing clients with added diversification, and they have turned to Dynamic Funds because of our long history and proven reputation in the alternatives space,” president and CEO Neal Kerr said in a statement.

The new fund aims to provide income and long-term capital appreciation primarily through a globally diversified portfolio of securities from businesses with an ownership interest in real estate, utility, or infrastructure assets. The firm added that the fund uses alternative tools to provide investors with the potential for improved risk-adjusted performance. It is managed by Tom Dicker, Frank Latshaw, and Oscar Belaiche, the same team behind a similar investment strategy that was launched in November 2009.

Meanwhile, Russell Investments Canada has launched the Russell Investments Yield Opportunities Pool, which the firm says provides access to a group of select money managers with expertise in income-producing investments.

Designed to provide sustainable income, the pool lets investors get exposure to alternative assets and strategies for potentially greater diversification, downside protection, and additional sources of income.

“Many investors who are approaching, or are in retirement, are looking for sustainable income sources,” said Darren Spencer, client portfolio manager, Alternative Investments for Russell Investments. “Given equity market volatility, low fixed income yields and increased longevity, it becomes clear Canadian investors need their income to last longer, with investments that can continue to grow over time.”

The pool will primarily invest in a broad range of income-producing equity, real-asset, and fixed-income securities. It also aims to use portfolio management techniques traditionally used by large institutional investors, such as short-selling and leverage. By using a multi-strategy approach, the pool can help mitigate risk and generate incremental returns.

With help from some of the world’s leading investment managers, the pool is designed to seek growth in a wide variety of economic and market environments while managing risk and offering the potential for sustainable yield, with a target yield of 4%-6%.


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