Scotia Institutional Asset Management (SIAM), a division of Toronto-based 1832 Asset Management LP, on Monday announced the launch of Scotia Institutional Credit Absolute Return Fund (SICAR Fund).
The new fund is designed to maximize absolute returns over a complete market cycle through investment in diversified long and short positions, investing primarily in North American fixed income and credit markets while seeking to mitigate volatility and interest rate risk, according to Scotia's announcement.
The fund will be managed in a flexible manner using investment strategies and instruments beyond the reach of a traditional mutual fund, with the goal of generating absolute returns in excess of 90-day Treasury Bills in Canada.
"The SICAR Fund is an investment solution designed to meet the evolving needs of our institutional and private client investors," says Glen Gowland, senior vice president and head of asset management, Bank of Nova Scotia, in a statement. "The SICAR Fund will enable our clients to bolster their more traditional portfolios with a complementary, uncorrelated alternative absolute return strategy."
The fund provides institutional and private client investors access to a credit absolute return strategy, which the SIAM investment team has managed for over three years. This strategy is intended to navigate a rising rate environment and while seeking to perform in absolute positive terms in up and down markets.