FrontierAlt Investment Management Inc. is launching a new bond fund. The actively managed frontierAlt All Terrain Bond Fund will be managed by Majorica Asset Management.

The Fund aims to provide investors with superior investment returns while focusing on capital preservation, according to the firm. Robert Marcus will be its manager, assisted by Edward Jong. Marcus was recognized as the “fixed income manager of the decade” in 2000, and is two-time winner of the Fixed Income Manager of Year Award at the Canadian Investment Funds Awards, according to a release. Jong is winner of several institutional money management awards over the past 10 years.

“We are delighted to have Robert Marcus as manager of the frontierAlt All Terrain Bond Fund,” says Kurankye Sekyi-Otu, president of frontierAlt Funds Management Ltd., a subsidiary of frontierAlt Investment Management. “Investors in the fund will benefit from his experience, expertise and track record which are unparalleled in the fixed income arena.”

Marcus uses an interest-rate anticipation strategy in the quest to generate higher returns – a strategy he has successfully used over the past two decades. “We are currently at the beginning of a lower interest-rate cycle, making it a good time to lock-in the yields of long-term, high-quality bonds for the benefit of investors,” says Marcus. “In my opinion, the Bank of Canada and the U.S. Federal Reserve will not raise interest rates further due to deflationary pressures and a slowdown in the Canadian and U.S. economies, although the U.S. economy is expected to slow at a faster pace.”

Marcus believes global deflationary pressures, led by a downturn in the U.S. housing sector, will lead to lower interest rates, which will be beneficial to investors in the fund.

“I am really pleased to be managing the frontierAlt All Terrain Bond Fund which is currently set to capture positive developments in the bond market,” says Marcus. “Launching the Fund at the beginning of a bullish cycle for long bonds is indeed a benefit to investors; however, I like the fund’s flexibility to protect the investor during adverse conditions as well.”

The Fund is available through the FundServ network under a front-end commission structure and F-Series for dealer sponsored wrap programs.