TORONTO, Nov. 2, 2015 /CNW/ - Aston Hill Asset Management Inc. (the "Company" or "Aston Hill") is pleased to announce the launch of the Aston Hill High Income Fund (the "Fund"), a new mutual fund to be managed by Aston Hill's Chief Investment Officer, Ben Cheng.
As lead portfolio manager, Mr. Cheng will combine his 25 years of income-focused investing experience with the use of liquid alternative strategies – including the use of options and shorting, within regulatory limitations – to provide downside protection and generate additional income. The Fund has no restrictions on asset class or geography, allowing Mr. Cheng the flexibility to pursue yield opportunities through a variety of securities including, but not limited to, equities, preferred shares, high yield bonds, REITs, investment grade fixed income, floating rate debt, convertible securities and asset-backed or mortgage-backed securities.
"I am very excited to be back managing money exclusively for Aston Hill's clients," said Mr. Cheng. "I've spent most of my career managing income-focused strategies, but I have never been more passionate about a fund than I am for the new Aston Hill High Income Fund. This is in part because I am back with the investment team I handpicked, but also, it is because of the freedom with which I have been granted when managing this fund, including my ability to use alternative strategies that allow for enhanced protection and income generation."
Aston Hill references the growing demand for these strategies from advisors as one reason for the Company's move in early 2014 into providing liquid alternative mutual funds. Citing a July 2015 survey by Morningstar and Barron's, 63% of advisors said they have planned to allocate more than 11% of their portfolios to alternatives within the next five years – up from 39% of advisors a year earlier. This demand is likely driven in part from individual investors. According to the Natixis 2015 Individual Investor Survey, individuals appear to recognize the challenges presented by today's markets, and are open to new approaches – 69% say they believe a traditional stock and bond portfolio is no longer enough to pursue returns and preserve capital.
"We believe our approach to using these strategies combined with fundamental and quantitative analysis, provides a unique product that addresses the need for lower risk, less correlated portfolios. This new fund, along with our Liquid Alternative Funds franchise, is intended to be a complement within clients' equity and fixed income portfolios that can help lower the overall volatility by providing a less correlated and differentiated source of returns."
Effective November 2, 2015, Mr. Cheng will also join as co-manager on the Aston Hill Global Growth & Income Fund alongside current portfolio manager, Vivian Lo.
To learn more about Liquid Alternatives, visit Aston Hill's Liquid Alternatives Education Centre.
Aston Hill is a wholly-owned subsidiary of Aston Hill Financial Inc. (TSX: AHF). Aston Hill Financial Inc. is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and segregated institutional funds. Aston Hill Financial has offices in Toronto and Halifax.
The above is for informational purposes only and is not, and under no circumstances shall be construed as an offering of the Funds mentioned herein or any other securities or as investment advice. Investors should read the simplified prospectus of the Funds for information about the Funds' investment objectives, strategies and the risks associated with an investment in the Funds before investing. Investors should discuss the suitability of the Funds with their investment advisor before making any investment decisions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
SOURCE Aston Hill Asset Management Inc.
For further information: please contact your financial advisor, call Aston Hill's Sales and Marketing support line at 416-583-2300 (toll-free at 1-800-513-3868), or visit our website at www.astonhill.ca.