The investment objective of the Ninepoint Alternative Credit Opportunities Fund is to provide investors with income and capital appreciation. The Fund will seek to achieve its investment objectives by primarily investing in a diverse mix of Canadian, U.S. and international fixed income securities for short-term and long-term gain.
|MTD†||YTD %†||1 YR %||3 YR %||5 YR %||10 YR %||Inception %††|
|Asset Back Securities||15.78|
|Korea, Republic of||1.94|
|Brookfield Infrastructure Finance Ulc 4.2% 09/11/2028|
|Canadian Western Bank 3.668% 06/11/2029|
|Co-Operators Financial Services Ltd 3.327% 05/13/2030|
|Cogeco Communications Inc 2.991% 09/22/2031|
|Goldman Sachs Group Inc/The 2.599% 11/30/2027|
|National Australia Bank Ltd 3.515% 06/12/2030|
|National Bank Of Canada 5.426% 08/16/2032|
|Primaris Real Estate Investment Trust 4.727% 03/30/2027|
|Toronto-Dominion Bank/The 3.06% 01/26/2032|
|Toronto-Dominion Bank/The 3.6% 10/31/2081|
Available to every Canadian investor who seeks additional portfolio income and diversification, Ninepoint introduces a new liquid alternative fixed income fund: the Ninepoint Alternative Credit Opportunities Fund.
A differentiated fixed income alternative that fully utilizes the strategies and assets available within the parameters of the liquid alternative class. The Fund functions very much like a credit multi-strategy, investing in different types of credit, employing various investment strategies.
Core portfolio: an allocation to less liquid securities, public credit, shorter-to-intermediate dated corporate bonds, high yield, structured notes, asset-backed securities, un-rated private placements, global credit, equity like securities and preferred shares. By blending a variety of credit greater yield can be generated.
Overlay portfolio: different strategies employed include interest carry, active trading, and short selling. Some leverage employed, but only on high quality investment grade credit. The overlay generates income with very little interest rate sensitivity as government bonds are short sold against all the corporate bond positions, isolating the credit spread.
Government bonds are short sold against all the Corporate bond positions, isolating the credit spread.
Q: Why offer a liquid alternative mutual fund?
A: It is all about flexibility. Having more tools in the toolbox to deliver more income for investors in a low interest rate environment. The liquid alt format allows us:
Q: What are the key differences between this fund and the Ninepoint Diversified Bond Fund?
A: The Portfolio Management team will be applying the same investment rigour and style as the Ninepoint Diversified Bond Fund. The new Alternative Credit Opportunities Fund will more closely resemble the Ninepoint Credit Income Opportunities Fund, which is essentially an alternatively managed credit strategy. In fact, as can be seen from the table below, the characteristics and risk profiles of the two funds will be quite similar. Except for leverage, which is limited to 3x, and the use of illiquid securities, limited to 10% of NAV, we expect that the Alternative Income Opportunities and Credit Income Opportunities Fund may exhibit very comparable performance over time.
Q: What is the managers’ experience with this type of strategy?
A: The portfolio management team does not manage index-like bond products. Throughout their careers, they have always managed very active strategies. Mark Wisniewski has been managing credit strategies since 2009. At Ninepoint he manages the Ninepoint Diversified Bond Fund (2017) and the Ninepoint Credit Income Opportunities Fund (2013). Given the management’s team track record and the similarities between the Ninepoint Credit Income Opportunities Fund and the new Alternative Credit Opportunities Fund, the team has demonstrated that they have the experience and process necessary to manage such a strategy.
|Fund Type||Alternative Fixed Income Strategy|
|Inception Date||April 30, 2021|
|Registered Tax Plan Status||Eligible|
|Management Fee||Series A: 1.40%
Series ETF: 0.90%
Series F: 0.90%
Series QF: 0.80%
|Performance Fee||See prospectus|
|Minimum Initial Investment||$500|
|Minimum Subsequent Investment||$25|
|Minimum Investment Term||1.5% if redeemed within the first 20 days|