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