“This provides retail investors with a new way to access illiquid private credit investment strategies that have traditionally been reserved for accredited and institutional investors and typically feature significant minimum investment requirements,” the release said.
While those funds had no “hard” lockup, investors who redeemed within a given period paid an early redemption fee. The minimum investment for those funds was also higher, at $25,000.
The interval fund doesn’t have a lockup period, but the 5% limit on quarterly redemptions means investors may not be able to redeem the desired amount in any given quarter, the fund facts document said.
The fund combines exposure to private credit funds and fixed-income ETFs. Investors will get exposure to floating-rate loans to mid-market private companies through Northleaf’s private credit funds for institutional investors. Between 35% and 65% of assets will be invested in these illiquid securities, according to the fund facts document.
The rest will be invested in Mackenzie fixed-income ETFs, providing liquidity.
The fund’s risk rating is medium, and it’s intended as a long-term investment for clients comfortable with limited liquidity.
“We believe the Mackenzie Northleaf Private Credit Interval Fund will appeal to long-term investors who are seeking to diversify their portfolios with non-traditional asset classes that have the potential for above average yields from private senior secured loans,” said Michael Schnitman, Mackenzie’s head of alternatives, in the release.
The management fee is 2.25% for Series A, and 1.25% for Series F. The interval fund is Mackenzie’s ninth alternative fund.
“[Some institutional funds] allocate 40%–50% of their portfolios into private alternatives,” McInerney said. “Now, that might be too much for an individual investor given liquidity needs, but why is it 0% for individual investors and 50% for the institutional investor?”
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
