Take an alternative approach to your portfolio

Take an alternative approach to your portfolio

Alternative investments represent a broad category of assets and are different than the three traditional ones: stocks, bonds, and cash. The purpose of Alternative investments is to provide growth and reduce risk through the diversification and investment in non-traditional strategies and assets.

Alternative assets can include:

Alternative strategies rely on the investment manager’s unique skills and expertise.

Some Alternative investment strategies include:

  • Long/short
  • Market neutral
  • Arbitrage
  • Multi-Strategy

Both alternative assets and strategies are a rapidly growing segment of the investment universe that is gaining popularity1 and use with retail investors. Once exclusively available to accredited investors and institutions only, in the past few years they have become democratized thanks to changes in regulations and a dramatic increase in product options ­– and are now available for a broader set of investors through prospectus offered mutual funds known as “Alternatives.”

Take an alternative approach to your portfolio

NEI Long Short Equity Fund

Introducing the NEI Long Short Equity Fund. Sub-advised by Picton Mahoney Asset Management, specialists and a pioneer in alternative investing in Canada. The Fund aims to provide consistent long-term capital appreciation with an attractive risk-adjusted rate of return in any market condition. The long/short equity strategy is designed to dampen volatility and mitigate downside risk relative to typical long-only portfolios, which are heavily exposed to broad market movements. Coupled with our exclusionary screens, ESG integration, and active ownership strategies, these add another layer of risk mitigation through our responsible investing framework.

 

NEI Long Short Equity Fund offers:

  • Alpha generation: potential to drive alpha, excess return over benchmark, regardless of market conditions by taking advantage of both long and short positions, creating a balanced investment approach.
  • Risk reduction: the fund targets a beta of 0.75 vs the S&P/TSX, which reduces the risk relative to the broader market which can lead to more stable returns during market fluctuations.
  • Responsible investing: the application of our exclusionary screens, active ownership, and ESG integration adds an extra layer of risk mitigation in a way that can help grow wealth by ensuring the sustainability and viability of the companies we invest in.

NEI Long Short Equity Fund

Picton Mahoney Asset Management

Alternatives

Fund Name Responsible investment strategy Portfolio manager or sub advisor
NEI Long Short Equity Fund
Picton Mahoney Asset Management
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Implementing our approach

There are five activities we undertake as part of our responsible investment program that have a direct connection to our funds: exclusionary screening, ESG evaluation, impact investing, thematic investing, and stewardship. For a more in-depth look at these activities and other aspects of our program, such as policy work and statements of commitment, check out our Responsible Investment Policy. To find out which approaches are applied to which funds, speak with your advisor or consult our fund prospectus.

Simplified Prospectus

RI Policy

Exclusionary screens

Companies are excluded from certain funds if we believe the risk of harm to society and the environment outweighs the potential benefits of investing. Examples include weapons manufacturing and tobacco production.

ESG evaluations

Companies are evaluated on their environmental, social and governance (ESG) performance, with results integrated into the investment process as we pursue long-term sustainable value for our investors.

Impact investing

In addition to financial returns, our impact funds aim to provide positive and measurable environmental and social outcomes. Among other objectives, investments held in the funds may seek to reduce carbon emissions, build low-income housing, and protect water resources.

Thematic investing

Some of our funds aim to generate returns from long-term trends expected to contribute to large-scale structural shifts in the economy, such as the need to better manage natural resources and the transition to cleaner energy sources.

Stewardship

Corporate engagement and proxy voting are tools we use to help companies improve their management of economic, natural and social capital, with the goal of growing long-term sustainable value.

Other asset classes

1https://www.forbes.com/uk/advisor/investing/what-you-need-to-know-about-alternative-investments/#how_big_is_the_alternatives_market

 

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.