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CC&L Funds launches three liquid alternatives funds

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Connor, Clark & Lunn Funds (CC&L Funds) has launched three alternative mutual funds effective 21 February 2019: CC&L Alternative Income Fund; CC&L Alternative Canadian Equity Fund; and CC&L Alternative Global Equity Fund.

“The recent introduction of a new, more flexible Canadian mutual fund regulatory structure allows us to offer select alternative strategies in funds that are available to all Canadian investors. In these funds, our investment teams can apply a broader set of tools, which increases the probability of adding value to traditional Canadian equity, global equity and fixed income portfolios to deliver better investment outcomes in the decade to come.” says Tim Elliott, President of CC&L Funds. “Against a backdrop of slowing global growth, low bond yields and record levels of global debt, return expectations for traditional, long-only stock and bond portfolios are anticipated to be lower over the next 10 years. Investors will need to evaluate accepting lower return expectations or embracing new types of investment solutions – such as Liquid Alternatives – as a way to maintain return objectives without a corresponding increase in risk.”
The portfolio manager for each of the three new funds is CC&L Investment Management Ltd (CC&LIM), one of the largest managers of alternative investments in Canada. CC&LIM has managed these types of strategies, primarily for institutional investors, for the last 15 years, including through the 2008 financial crisis. CC&LIM currently manages over USD5 billion of alternative investments.
“Historically, individual investors have had to choose between low-cost passive exposure to market returns, or portfolios which charge fees for active management on the entire portfolio even though much of the return comes from market exposure,” says Elliott. “For our alternative equity funds, we combine low cost market exposure with fees for value added above the benchmark. In our alternative income fund, we are aiming to provide a very different return profile than what is available in long-only bond funds, combined with a fee structure that is directly aligned with added-value.”

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