HR strategies announces the launch of a québec absolute return fund

HR Strategies, a Québec investment management company, announces the establishment of the Fonds Stratégique à Rendements Absolu HRS (SARA Fund), which will invest its assets with Québec absolute return managers. The Fund will be available to Québec and Canadian investors.

HR Strategies will act as General Partner of the SARA Fund, which benefits from an initial investment of $175 million. The main investors are the Caisse de dépôt et placement du Québec ($60 million), Fondaction CSN ($55 million), Fonds de solidarité FTQ ($50 million) and the Régime de retraite de la CSN ($10 million). More investors may be added in the coming months.

This new fund will rely on fundamental analysis to select managers, based on their expertise, reputation and rigour. The Fund principal objective is to deliver steady, healthy returns to its investors — aiming for an average annual return of 5% above the Treasury Bill rate of return.

"In Québec, we have managers who are just as qualified as those of other major financial centres. The SARA Fund will not only enable companies and managers to develop, but will also allow investors to reduce their portfolio risk and obtain attractive and stable returns," said René Perreault, President of HR Strategies.

"We favour managers who are known for their qualitative strategies and have proven fund management track records," said Mr. Perreault. "The portfolios will be completely transparent. We will invest in highly liquid strategies, with managers who will trade primarily stocks, bonds and liquid futures contracts."

"The Caisse’s participation in the SARA Fund will both provide the institution with attractive returns relative to the level of risk and boost the development of Québec’s financial expertise. HR Strategies, a partner the Caisse knows well, has an interesting road map and is renowned for managing absolute return funds of funds — in addition to offering very reasonable management fees," said Mario Therrien, Senior Vice-President of Hedge Funds at the Caisse de dépôt et placement du Québec.

"This fund will have a developmental effect on Québec’s financial industry. It will stimulate activity in the sector. Many features, including its transparency and manager compensation structure, are based on the best practices of socially responsible finance, helping position Montréal, Québec's largest city, on this forward-thinking idea," said Geneviève Morin, Chief Financial and Corporate Development Office at Fondaction CSN.

"In addition to relying on the talent we have in Québec’s financial sector, the SARA Fund promotes the emergence of new portfolio managers and, at the same time, supports Québec entrepreneurship in this promising sector. In line with our mission, this initiative also meets the objectives of the major Montréal Finance project," said Gaétan Morin, Executive VicePresident of Investments at the Fonds de solidarité FTQ.

HR Strategies is a member of the Hedge Fund Standards Board (HFSB), an international, London-based organization that aims to implement the industry’s best practices and standards, particularly about governance, transparency and manager/investor alignment of interest. The Caisse de dépôt et placement du Québec is also a member of the Board’s Investor Chapter, which includes 30 institutional investors from Europe, Asia and North America. Mr. Therrien of the Caisse also serves on the HFSB Board of Trustees.