Canada’s alternative mutual fund (“liquid alt”) market has seen rapid growth since the new NI 81 102 rule hit the tape in January 2019. Hedge funds and asset managers are increasingly launching liquid alts as they offer asset managers more flexibility in deploying capital than traditional mutual funds. Liquid alts also allow for strategies to enhance portfolio diversification and potentially better optimize risk and return for investors. Although investors have accepted the vehicle, investing more than $21 billion in approximately 150 funds1, there still appears to be significant asset-gathering upside, as liquid alts represent only 1% of total mutual fund assets under management (AUM) of $1.88 trillion2.
Download the paper to gain insight on key operational and investor considerations for Canadian asset managers interested in launching liquid alt ETFs.
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