Toronto-based Arrow Capital Management Inc. announced the launch of the Exemplar Growth and Income Fund on Monday.

The fund is a balanced fund that offers strategic asset allocation. Its investment objective is to grow capital through equity and fixed income allocations and to protect the portfolio through various hedging techniques. It is meant to address the key challenges of income, growth and safety of capital that are faced by retail investors in the current low-rate environment, according to the firm.

The fund will be actively managed by Veronika Hirsch, of Arrow Capital Management, and Mike MacBain and Mike Swan, both of East Coast Fund Management Inc. in Toronto.

Hirsch, who has more than 25 years in investment experience in portfolio management, will lead the fund’s equity allocation.

The fixed income strategies will be led by MacBain, who has more than 25 years of experience in fixed income, money markets, derivatives and foreign exchange.

The fund will offer a distribution class of shares that will pay 3% on a quarterly basis.