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 Backed Securities||23.13|
|Cash And Equivalents||5.88|
|Bank Of Nova Scotia 3.7% 07/27/2081|
|Barclays Plc 2.166% 06/23/2027|
|Canadian Imperial Bank Of Commerce 1.96% 04/21/2031|
|Empire Life Insurance Co 2.024% 09/24/2031|
|Goldman Sachs Group Inc/The 2.599% 11/30/2027|
|National Bank Of Canada 5.426% 08/16/2032|
|New Latitude Mortgage Trust 3.25% 12/15/2023|
|Sun Life Financial Inc 2.58% 05/10/2032|
|Toronto-Dominion Bank/The 3.06% 01/26/2032|
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.
|Series ETF *||NACO|
*Exchange: Cboe Canada Exchange
|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||20 days (1.5% penalty)|
|CUSIP||NACO: 65443Q100 (Cboe)|
††Inception: May 10, 2021. All returns and fund details are a) based on Class F shares; b) net of fees; c) annualized if period is greater than one year; d) as at November 30, 2023. Top ten holdings, sector allocation and geographic allocation as at November 30, 2023. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Geographic allocation based on % of net asset value and excludes cash. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.
The Ninepoint Alternative Credit Opportunities Fund (the “Fund”) is generally exposed to the following risks: Borrowing Risk; Collateral Risk; Concentration Risk; Credit Risk; Currency Risk; Cybersecurity Risk; Derivatives Risk; Foreign Investment Risk; Inflation Risk; Interest Rate Risk; Leverage Risk; Liquidity Risk; Market Risk; Performance Fee Risk; Securities Lending, Repurchase and Reverse Repurchase Transactions Risk; Series Risk; Short Selling Risk; Small Company Risk; Specific Issuer Risk; Substantial Securityholder Risk and Tax Risk. Additional risks associated with an investment in ETF Series securities of this Fund include: Absence of an active market for ETF Series risk; Halted trading of ETF Series risk and Trading price of ETF Series risk.
Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for F shares of the Fund for the period ended November 30, 2023 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.