Toronto-based Transcend Private Client Corp., a subsidiary of Provisus Wealth Management Ltd., has launched a new fixed-income fund, Multi-Strategy High Yield Fixed Income, which will follow the pay-for-performance fee model introduced to the Transcend platform in September 2016.
Under the pay-for-performance fee model, clients only pay a nominal amount unless performance results are above the industry benchmark.
"This fund offers investors a secure alternative investment that yields better results than a bond or GIC," says Chris Ambridge, CEO of Transcend, in a statement. "We are offering Canadians a reliable fund with low risk, based on our company philosophy that you only pay if the results are better than the benchmark."
The fund will be "Canadian-centric," the firm says, and diversified in terms of assets through active management. The fund will be comprised of corporate bonds, convertible bonds, preferred shares, income trusts, real estate investment trusts, secured real estate and infrastructure projects, as well as alternative investment strategies and hedge funds.
The investment strategy will be focused on a short to mid-term structure, similar to a five-year GIC, the firm adds.
Investors using the fund will not be required to pay anything above basic management costs unless the fund outperforms the benchmark, which is 50% of the FTSE short bond index and 50% of the FTSE mid bond index.