SBAR is an absolute return relative value investment strategy that seeks to generate returns from low-risk Canadian government and government-backed bonds, not corporate credit, regardless of market conditions and with no need to make calls on the direction of markets or interest rates.

 


INVESTMENT OBJECTIVES

The investment objective of the Fund is to realize consistent absolute positive returns over the credit cycles of:

  • Return: 4 to 5% above 91d Can T-Bills
  • Volatility: 4 to 6%, annualized
  • Diversification benefits, capital preservation and low zero correlation with traditional asset classes.

INVESTMENT STRATEGIES

The Fund has broad and flexible investment authority and uses various fixed income relative value and hedging strategies supported by internal models that identify, rank and weight a universe of opportunities based on current expected returns vs. historical volatility.



  • Canadian Credit Spreads – Capture spreads between low-risk and liquid Canadian federal, provincial, and government-backed agency bonds.
  • Yield Curve – Hedged positions on the yield curve (Canada or U.S.).
  • Duration – Benefit from mispricing, based on a bond's current price relative to its historical duration  (Canada or U.S.).

PORTFOLIO CARBON INTENSITY

The Fund intends to achieve its investment objectives while maintaining a portfolio that, in aggregate, the Manager assesses to have a lower carbon intensity than broadly diversified Canadian bond portfolios sush as the FTSE Canada Universe Bond Index.

2 The Carbon Intensity of the portfolio and the FTSE Universe Bond index is a calculation internally and is based on the Tonnes CO2 emitted per $M revenue in the case of corporate bonds or per GDP in the case of government bonds (Federal, provincial & municipal). Where possible figures are from official publicly available sources, however, some of the figures used are estimates based on proxies and assumptions.

FUND FACTS

LIQUIDITY:
  • Minimum subscription:
$25K accredited ($5M Cl. I)
  • Registered  Accounts:
Yes - RRSP, TFSA, RRIF, etc.
  • Dealing / Valuation:
Monthly
  • Redemption notice:
5 days (No Lockup)
FUND STRUCTURE:  
  • Fund Launch Date:
September 1st, 2023
  • Legal Structure:
Unit Trust
  • Trustee:
Computershare Canada
DISTRIBUTIONS:  Annually (cash or reinvested units)
MANAGEMENT FEES:
  • Class C:           
1.25%
  • Class I:          
Negotiated (min $5M)
PERFORMANCE FEES:
  • 15% above 91d T-bill (Perpetual High Water Mark)
SERVICE PROVIDERS:
  • Prime-Broker:
BMO Nesbitt Burns
  • Administrator:
SS&C
  • Legal:
McMillan LLC
  • Auditor:
PricewaterHouse Coopers LLC

 

PORTFOLIO MANAGERS