Click here for the PDF: MacNicol Alternative Asset Trust Q1 2024 Commentary

 

The MacNicol Alternative Asset Trust is a multi-strategy, alternative investment platform designed to generate returns that are positive and uncorrelated with public stock or bond markets. The Trust, through its underlying limited partnerships invests in real estate, private equity, and hedge funds. In total, the Alternative Trust is invested in more than 150 separate real estate projects, private businesses, and hedge funds. The advantages of our approach to alternative assets include effective diversification, enhanced liquidity and a less volatile return profile compared to the individual asset classes themselves.

Alternative Trust Update: The investment objectives of the MacNicol Alternative Asset Trust are to generate positive absolute returns under most market and economic conditions with little or no correlation to the U.S. and Canadian stock markets. To achieve these goals, the Trust, through its underlying partnerships will invest directly in a variety of private real estate, hedge fund and private equity investments. During the first quarter of 2024, the Trust was higher by 4.1% net of costs, and this brings the Trust’s annualized rate of return since inception [October 2010] to 9.5%. Furthermore, the Trust’s annual volatility now sits at 6.9% or roughly one half the volatility of the S&P/TSX Composite Index and approaching one third the volatility of the S&P500 Index.

 

First Quarter 2024 Highlights:

During the first quarter of 2024, the MacNicol Investment Team observed a widening gap between inflation expectations on the part of market participants and voting members of the world’s major central banks. In addition, we observed incoming data that led us to conclude that the fight against inflation may not be over yet. Finally, as reported in last quarter’s update for the Trust, our team continued to observe fiscal profligacy during the first quarter of 2024. Taken together, the team felt that the best way forward, was to ensure broad diversification across alternative asset classes, strategies, and positioning through various funding rounds. As we exited those exercises, we came away feeling very positive about the role the Trust plays in your long-term investment goals and we thank you for your ongoing trust in our judgement and passion.

 

 

Click here for the PDF: MacNicol Alternative Asset Trust Q1 2024 Commentary