Liquid Alternative Funds: Broadening Options for Retail Investors
The introduction of liquid alternative mutual funds and exchange-traded funds (ETFs) in 2019 is a unique development in the Canadian asset management industry. Allowing retail funds to use alternative investment strategies serves to increase the investment options available to retail investors. For asset managers, liquid alts may enable them to meet a previously unmet investment need in the marketplace. While liquid alts can be a valuable component of a diversified, balanced portfolio, investors should be aware of the potentially increased risk profile of these funds, arising primarily from the increased use of derivatives, as well as from the more complex investment strategies. Since the Canadian Securities Administration (CSA) introduced its new rules permitting liquid alts, a number of fund providers have introduced these products in the marketplace, with the majority of the funds available being relatively conservative in nature and invested primarily in high-quality, liquid investments.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.