Toronto-based Northwater Capital Management has launched a portable alpha bond fund targeted at Canadian defined benefit plans. The Northwater Enhanced Long Bond Fund will seek to return between 175 and 325 basis points over its benchmark, the Scotia Capital Long Overall Bond Index.
“Plan sponsors are looking for ways to add significant value to their bond portfolio–with the flexibility of allocation to both mid-duration and longer-duration benchmarks to better reflect their plan’s liability profile,” explains Northwater Vice President Stephen Foote.
Northwater is an employee-owned investment company with offices in Toronto, New York and Chicago. The firm has $10 billion in assets under management, including U.S. $4.3 billion in its market-neutral fund of hedge funds, almost all of which is used in portable alpha structures.