Toronto, Canada. June 6, 2022 – Ninepoint Partners LP (“Ninepoint”), one of Canada’s leading alternative investment managers, today announced plans to launch the Ninepoint Target Income Fund (‘the Fund’), a mutual fund focused on delivering a target yield to investors. An ETF series is expected to be listed on the NEO Exchange (NEO:TIF) following the fund launch.
“We are very pleased to enter into this unique partnership with RBC Capital Markets” commented John Wilson, Co-CEO and Managing Partner at Ninepoint. “Together we will provide a transparent, highly liquid solution that offers a 6% target distribution* with downside protection for Investment Advisors and their clients.”
“Advisors will have a new way to generate the income levels typically targeted by structured notes products without the headache associated with managing multiple line items and varying maturities,” added Etienne Bordeleau-Labrecque, Vice-President and Portfolio Manager at Ninepoint. “The current volatile market environment provides a timely opportunity to allocate to defensive equity income-based strategies like the Target Income Fund.”
Ninepoint will utilize income-oriented solutions specifically designed for the fund, through a partnership with RBC Capital Markets. “This innovative, open-ended fund launched by Ninepoint will offer a broader range of advisors access to a diversified portfolio of income-generating strategies designed by RBC’s Quantitative Investment Solutions team,” said Angus Rigby, Managing Director and Head of Global Market Sales Canada, RBC Capital Markets.
“We are excited to collaborate with our long term partners, Ninepoint, to help our clients get access to the best of our Quantitative Investment Solutions" said Fabian De Prey, Managing Director, Global Head of Multi Asset Structuring, RBC Capital Markets.
Ninepoint Target Income Fund Investment Objective
The investment objective of the Ninepoint Target Income Fund is to seek to provide unitholders with stable,
monthly distributions and lower volatility than a direct investment in the broad equity markets by investing primarily in a diversified portfolio of equity index based investments that generates income and using derivatives strategies to moderate the market volatility of those investments.
The Fund seeks to generate income by primarily selling put options on broad equity indices, including exchange traded funds (ETFs). In addition, the Portfolio Manager enters into, or obtains exposure to, systematic put selling strategies through the use of instruments, such as swaps. The Fund aims to have exposure of at least 70% to North American equities.
This mutual fund will have an ETF Series option for ease of rebalancing in a portfolio with no hold period.
The Fund is expected to be available for purchase on or about June 28, 2022 and will be eligible for registered plans. The mutual fund series units are expected to be available through Fundserv. Subject to satisfying the NEO Exchange’s original listing requirements, the ETF series units are expected to be available for trading on June 30, 2022 on the NEO Exchange (Ticker: TIF) or another exchange or marketplace where ETF series units are traded through registered brokers and dealers in the province or territory where the investor resides.
About Ninepoint Partners
Based in Toronto, Ninepoint Partners is one of Canada’s leading alternative investment management firms overseeing $8 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including North American Equity, Global Equity, Real Assets & Alternative Income.
* Target distribution is subject to change by the manager.