Toronto-based NEI Investments on Monday announced the launch of NEI Conservative Yield Portfolio, be managed by NEI’s internal portfolio management team.

The new fund uses strategic asset allocation as the principal investment strategy and invests primarily in income mutual funds and also in yield generating, equity mutual funds that provide exposure to markets around the world, according to the NEI announcement.

“Investment yield at the lower end of the risk spectrum continues to be a significant need in the market place,” says Daniel Solomon, chief investment officer at NEI and lead portfolio manager to the new fund, in a statement.

“Even more conservative investors have needs beyond just wealth preservation, and this portfolio strives to fulfill some of these needs,” adds Solomon.

The fund will aim to pay a fixed monthly distribution consisting of income and/or return of capital of a fixed amount per unit determined as of Dec. 31 in the previous year and will have an initial minimum investment of $100,000.

The management team uses strategic asset allocation as the principal investment strategy, says NEI, and has the flexibility to shift its asset allocation over the short-term in response to opportunities identified in financial markets and in order to minimize risks.

NEI Investments is a national investment firm with approximately $6 billion in assets under management. It is owned 50% by the provincial credit union centrals and 50% by Desjardins Group.