KBSH, Arrow Hedge announce joint venture

Date: Tuesday, December 17, 2002

KBSH Capital Management Inc. and Arrow Hedge Partners Inc. are announcing a joint venture, with KBSH Capital Management becoming the sole distributor of the Arrow Hedge fund of funds products to the institutional marketplace. KBSH Arrow Global Long/Short Fund and the KBSH Arrow Multi-Strategy Fund products are being introduced to the Canadian marketplace. They are the first alternative "multi-manager" offerings by KBSH in the fast growing alternative asset category. The primary objectives of these funds are to deliver consistent returns while minimizing overall portfolio volatility under all market conditions. The KBSH Arrow funds are specifically designed to help clients achieve positive absolute returns and greater diversification. These funds have been shown to provide lower correlation to traditional asset classes. Pension, endowment, foundation and managed accounts will benefit from the funds transparency and liquidity, which are hallmarks of these globally diversified products.