Key Takeaways
- • NEI Investments launches NEI Long Short Equity Fund, marking the firm's first entry into the alternatives investment category, expanding beyond its existing lineup of traditional fund offerings.
- • Picton Mahoney Asset Management, a pioneer in Canadian alternative investing, serves as sub-adviser for the new fund, bringing specialized expertise in long-short equity strategies to NEI's platform of over 20 subadvisors.
- • The fund is designed to generate long-term capital appreciation through a portfolio of long and short equity positions, positioning it to capture upside exposure while reducing broad market risk exposure.
- • NEI Investments is a registered trademark of Northwest & Ethical Investments L.P., which is owned by Aviso Wealth Inc., anchoring this product launch within an established wealth management infrastructure.
Summary
NEI Investments announced the launch of NEI Long Short Equity Fund on January 22, 2024, marking the firm's inaugural product offering in the fast-growing alternatives space. The fund represents a strategic expansion into alternative asset classes for an investment manager previously focused on traditional fund structures. By introducing this alternative investment vehicle, NEI is responding to institutional and high-net-worth investor demand for strategies that operate outside conventional long-only equity markets.
Picton Mahoney Asset Management, a recognized specialist in Canadian alternative investing, serves as the fund's sub-adviser. This partnership leverages Picton Mahoney's established track record and expertise in alternative strategies while allowing NEI to distribute the product through its existing distribution channels and advisor relationships. The arrangement reflects a common industry practice in which asset managers partner with specialized sub-advisers to build capability and credibility in new strategy categories without developing the expertise entirely in-house.
The NEI Long Short Equity Fund employs a long-short equity strategy with the stated objective of generating long-term capital appreciation while reducing exposure to broad market risk. Long-short strategies typically involve maintaining long positions in securities expected to appreciate while simultaneously shorting securities expected to decline, theoretically allowing managers to profit in both rising and falling markets while dampening correlation to traditional equity benchmarks. This approach appeals to institutional investors and family offices seeking portfolio diversification and downside protection characteristics not available in traditional long-only funds.
NEI Investments is owned through a subsidiary structure: Northwest & Ethical Investments Inc. serves as the general partner of Northwest & Ethical Investments L.P., with Aviso Wealth Inc. as the sole limited partner. This corporate structure situates NEI within a broader wealth management platform, providing operational and distribution support for product launches such as this fund. The addition of a long-short equity alternative further diversifies NEI's product menu, which currently includes over 20 subadvised fund strategies across traditional asset classes.
Picton Mahoney Asset Management, a recognized specialist in Canadian alternative investing, serves as the fund's sub-adviser. This partnership leverages Picton Mahoney's established track record and expertise in alternative strategies while allowing NEI to distribute the product through its existing distribution channels and advisor relationships. The arrangement reflects a common industry practice in which asset managers partner with specialized sub-advisers to build capability and credibility in new strategy categories without developing the expertise entirely in-house.
The NEI Long Short Equity Fund employs a long-short equity strategy with the stated objective of generating long-term capital appreciation while reducing exposure to broad market risk. Long-short strategies typically involve maintaining long positions in securities expected to appreciate while simultaneously shorting securities expected to decline, theoretically allowing managers to profit in both rising and falling markets while dampening correlation to traditional equity benchmarks. This approach appeals to institutional investors and family offices seeking portfolio diversification and downside protection characteristics not available in traditional long-only funds.
NEI Investments is owned through a subsidiary structure: Northwest & Ethical Investments Inc. serves as the general partner of Northwest & Ethical Investments L.P., with Aviso Wealth Inc. as the sole limited partner. This corporate structure situates NEI within a broader wealth management platform, providing operational and distribution support for product launches such as this fund. The addition of a long-short equity alternative further diversifies NEI's product menu, which currently includes over 20 subadvised fund strategies across traditional asset classes.
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