The fund offers Canadian investors a consistent yield and stable cash flow through a 5% fixed annual distribution.

Mackenzie Investments launched today the Mackenzie Alternative Enhanced Yield Fund.

The fund generates returns using alternative strategies to build a diversified portfolio. (Markets Insider)

Fund investing methodology

The Mackenzie Alternative Enhanced Yield Fund invests in yield assets using a proprietary combined structured and fundamental approach to portfolio construction. However, it also uses leverage within certain asset classes to generate income, however, keeping a watch on risk. Therefore, the fund actively manages a diversified allocation to contain risk and adapt to fast-changing market conditions.

The fund will be managed by Matthew Cardillo, VP and Portfolio Manager.

Mackenzie’s liquid alternatives

According to Mackenzie Investments, liquid alternatives AUM could grow to $ 100 billion in Canada in the coming years. In May 2018, the firm launched Canada’s first absolute return fund for retail investors.

The Mackenzie Alternative Enhanced Yield Fund is the firm’s fifth fund offering in the liquid alternatives space.

“In the current low-yield environment, investors should consider seeking access to alternative strategies and asset classes that provide higher and more consistent income,” said Michael Schnitman, Senior Vice President and Head of Alternative Investments. “Mackenzie Alternative Enhanced Yield Fund can complement an income-focused balanced portfolio as it aims to achieve a higher yield while providing investors with increased diversification and potentially lower total portfolio volatility.”

Moreover, Mackenzie’s Accessible Alternatives is the firm’s mission to democratize alternatives by making them accessible and to help achieve better outcomes over the long-term.

The asset manager had $138.4 billion in assets under management as of May 31, 2020.

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