Janus Henderson Investors has launched an Absolute Return Fixed Income fund to appeal to investors seeking returns with low volatility, Investment Week can reveal.
Launched today, the fund will aim to provide positive returns across a range of market environments, while maintaining a focus on low volatility and capital stability.
It will have the ability to invest across global fixed income markets and is unconstrained by a benchmark.
The management team will invest in a core of shorter maturity globally diverse investment grade securities, alongside a small number of derivatives-based strategies used to manage downside risk and generate additional return.
The Ucits fund will be registered in England and Wales and sit in the Investment Association's Targeted Absolute Return sector.It will be co-managed by the group's co-head of global bonds, Nick Maroutsos, and portfolio managers Dan Siluk and Tim Winstone, and will follow the same investment approach as the existing $9.3bn Absolute Return Income strategy.
Nick Maroutsos said: "Our aim is to provide positive returns but with an emphasis on low volatility and low correlation to other asset classes. We start with a clean slate not a benchmark index and look globally for opportunities to generate income and capture relative value.
"The launch of this fund allows us to optimise our core investments to maximise risk-adjusted returns for investors based in the region.
"Simon Hillenbrand, head of UK retail, added: "We are excited to bring this proven absolute return fixed income approach in a form that has appeal to clients in the UK. We believe it provides a complementary strategy to traditional benchmark-orientated fixed income funds."