Bank of Nova Scotia and Arrow Hedge Partners Inc. today announced the launch of The Bank of Nova Scotia Arrow Multi-Strategy Fund Deposit Notes, Series 1.

Designed to appeal to investors looking for principal protection with the potential for capital growth, they are principal protected notes that provide exposure to the Arrow Multi-Strategy Fund, one of the largest and most successful hedge fund-of-funds in Canada. The investment objective of the fund is to generate consistent absolute returns, while limiting the overall volatility of the fund and minimizing the fund’s correlation to major equity and bond market indices.

“The use of the Arrow Multi-Strategy Fund to underpin this Bank of Nova Scotia principal protected note is consistent with the strategy of providing investors with exposure to potential growth, driven by the pursuit of absolute performance, while protecting them from downside risk, because that’s exactly the way the fund is managed,” says Jim McGovern, CEO of Arrow in Toronto.

The notes will be available to Canadian investors for purchase from May 17 to June 25, maturing June 30, 2015.

Arrow Hedge Partners Inc. is an investment management company that specializes in providing access to high-quality hedge fund managers and multi-manager funds of funds to a wide range of clients, including family offices, institutions, pension funds and high net-worth individuals.