National Life’s new “Fund of Funds” hedge fund product, a first in the Canadian segregated fund industry, provides significant alternative to conventional methods of wealth management.

The National Life Alternative Investment Strategies offer two unique hedge funds that combine superior growth potential with disciplined risk management.

“Hedge funds have traditionally only been available to a select group of people because of high minimum requirements. However, our hedge funds are available for a minimum investment of just $1,000. We’ve opened up the potential return of hedge funds to the general investor,” said Brenda Moore, director of marketing, retirement and investment products at National Life. “Because our “Fund of Funds” approach combines multiple strategies within a single fund, this provides for greater diversification and a lower level of risk, regardless of market conditions.”

The two funds have unique features that allow investors to expand their portfolio options and increase diversification.

The Multi-Strategies (Univest) Fund, managed by Norshield Financial Group, aims to generate a rate of return that exceeds more traditional investments while maintaining a risk level lower than that of a typical Canadian bond index. It focuses on preservation of capital and comprehensive management of risk. Norshield Financial Group (Norshield) specializes in three areas of alternative investments: product creation, proprietary research and consulting.

The Multi-Strategies (GAM) Fund, managed by GAM, aims for an absolute rate of return with low volatility and low correlation to equity and bond markets. It is focused on achieving long-term capital appreciation. GAM is owned by UBS A.G. and has a distinctive and specialist approach to active investment management. It has offered its clients access to alternative strategies since 1983.

According to National Life, by creating a pool of single strategies, the manager can create a more diversified fund and make decisions based on expertise in risk management, market direction and investment strategies to decide the composition and direction of their particular “Fund of Funds.” The result is a fund that has very little correlation with other assets and markets, has the potential to outperform in all market conditions and significantly lower volatility.