Transcend has launched the Multi-Strategy High Yield Fixed Income Fund, which allows clients to pay a nominal fee unless performance results are above the industry benchmark.
Investors using the fund won’t pay anything above basic management costs until the fund outperforms the benchmark. In this case, the benchmark is 50% of the FTSE Short Bond Index and 50% of the FTSE Mid Bond Index.
The fund will be Canadian-centric and actively managed. It will consist of corporate bonds, convertible bonds, preferred shares, income trusts, REITs, mortgages, secured real estate and infrastructure projects, as well as alternative investment strategies and hedge funds. The investment strategy will be focused on a short- to mid-term structure, similar to a five-year GIC.