ScotiaFund Monday announced the launch of Scotia Conservative Income Fund.
The fund intends to generate income and manage interest rate risk by investing primarily in a diversified blend of conservative fixed income funds.
“Scotia Conservative Income Fund rounds out ScotiaFunds’ fixed income lineup by providing conservative investors with an alternative to more traditional short-term bond funds,” said Neil Macdonald, managing director, ScotiaFunds.
“When compared to traditional bond funds, the fund aims to provide investors with lower volatility, modest income and the potential for greater capital preservation.”
Scotia Conservative Income Fund is managed by 1832 Asset Management L.P. The fund invests primarily in underlying funds that invest in fixed income securities, such as but not limited to: bonds issued by Canadian and U.S. federal, provincial and municipal governments; bonds and preferred shares issued by U.S. and Canadian investment grade corporations and non-investment grade corporations; and residential mortgages.