Key Takeaways
- • Arrow Capital Management launched Arrow EC Equity Advantage Alternative Fund with an actively managed ETF series trading on the Toronto Stock Exchange under ticker ADIV as of January 11, 2024.
- • The fund employs a dual-strategy approach combining a proprietary market neutral strategy (long/short North American equities) with up to 100% S&P/TSX Composite Index exposure, targeting predominantly North American dividend-paying securities.
- • East Coast Asset Management SEZC serves as sub-advisor, with head of research LeeAnn Janissen leading development of the proprietary market neutral strategy that forms the fund's core investment approach.
- • The fund is available through FundSERV as a mutual fund series and represents Arrow's third actively managed ETF series, expanding the firm's product offerings and deepening its relationship with East Coast Asset Management.
- • Mark Purdy, managing director and chief investment officer at Arrow, signaled continued investment in product line expansion to enhance investor accessibility to Arrow's strategies.
Summary
Arrow Capital Management announced the launch of Arrow EC Equity Advantage Alternative Fund on January 11, 2024, introducing investors to a liquid alternative strategy through both traditional mutual fund and actively managed ETF structures. The ETF series began trading on the Toronto Stock Exchange under the ticker ADIV, while the mutual fund series remains accessible through FundSERV, positioning the offering across multiple distribution channels to capture institutional and retail demand.
The fund's investment framework employs two complementary strategies designed to provide downside protection while capturing North American equity returns. The proprietary market neutral strategy executes simultaneous long and short positions in North American equity securities, while the portfolio maintains up to 100% exposure to the S&P/TSX Composite Index. This dual-approach design targets predominantly dividend-paying equity securities, aligning the strategy with income-focused institutional investors seeking both yield and risk mitigation within their equity allocations.
The collaboration between Arrow Capital and East Coast Asset Management SEZC strengthens both firms' market positioning. East Coast, serving as sub-advisor, contributed its proprietary market neutral strategy—developed under the research leadership of LeeAnn Janissen—to the fund's core investment framework. According to Janissen, the strategy delivers "a sophisticated approach to managing risk while optimizing performance potential," addressing institutional demand for innovative solutions in complex investment environments.
This launch marks Arrow's third actively managed ETF series and represents a strategic expansion of the firm's alternative product suite. Mark Purdy emphasized Arrow's commitment to continued product development, stating the firm would "continue to invest to expand our product line up, providing investors greater accessibility to our strategies." The multi-series structure—offering both mutual fund and ETF access to the same underlying strategy—reflects industry trends toward accommodating varied investor preferences and custody requirements among institutional asset allocators.
The fund's investment framework employs two complementary strategies designed to provide downside protection while capturing North American equity returns. The proprietary market neutral strategy executes simultaneous long and short positions in North American equity securities, while the portfolio maintains up to 100% exposure to the S&P/TSX Composite Index. This dual-approach design targets predominantly dividend-paying equity securities, aligning the strategy with income-focused institutional investors seeking both yield and risk mitigation within their equity allocations.
The collaboration between Arrow Capital and East Coast Asset Management SEZC strengthens both firms' market positioning. East Coast, serving as sub-advisor, contributed its proprietary market neutral strategy—developed under the research leadership of LeeAnn Janissen—to the fund's core investment framework. According to Janissen, the strategy delivers "a sophisticated approach to managing risk while optimizing performance potential," addressing institutional demand for innovative solutions in complex investment environments.
This launch marks Arrow's third actively managed ETF series and represents a strategic expansion of the firm's alternative product suite. Mark Purdy emphasized Arrow's commitment to continued product development, stating the firm would "continue to invest to expand our product line up, providing investors greater accessibility to our strategies." The multi-series structure—offering both mutual fund and ETF access to the same underlying strategy—reflects industry trends toward accommodating varied investor preferences and custody requirements among institutional asset allocators.
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