Toronto-based NEI Investments Thursday announced that Northwest Specialty High Yield Bond Fund is re-opened to new subscriptions effective March 5, pending regulatory approval. The fund has been closed to new subscriptions since Sept. 30, 2009.
“We are excited to once again provide investors with a Canadian focused high yield solution at a time when the market is really expanding. Aviva’s deep understanding of the high yield sector and proven track-record in all market conditions gives us great confidence that investors are in a good position to prosper over the long term,” says Daniel Solomon, chief investment officer of NEI Investments.
Aviva Capital Management, the portfolio sub-advisor and portfolio manager to both Northwest Specialty High Yield and Northwest Specialty Global High Yield Bond Funds, prides itself on security selection and avoidance of defaults, traits that have made both funds highly successful over the past several years.
“Back in 2009, strong asset growth of the fund combined with the relatively small Canadian high yield market created unacceptable risk exposure for our investors. This was the driving force behind the closure at that time,” explains Solomon.
Since 2009 however the Canadian high yield market has grown from $1.2 billion to over $5 billion in 2011, according to DBRS Ltd. Aviva is confident that the Canadian market now has the necessary scale to facilitate the reopening, NEI Investments says.