The fund has a target annualised return of 6% over rolling three-year periods and can invest within the full range of bonds and bond derivative instruments.
Alliance Trust said the fund will source returns from a combination of asset allocation positioning, relative value strategies and to some extent stock selection.
Depending on the stage of the economic cycle portfolio construction of the fund is expected to vary significantly, both in terms of asset allocation and the split between bonds and derivative positions.
Juan Valenzuela, co-manager of the Dynamic Bond Fund, said: “The Dynamic Bond Fund addresses some of the concerns and issues that face investors today. We are in a low interest rate environment and there is a lot of risk out there, but we believe we have the tools to navigate that risk and deliver a return to investors.”
Edward Troughton, managing director of Alliance Trust Investments, said: “The launch of the second fund in our focused range of fixed income products is an important milestone for Alliance Trust Investments.
“We have listened carefully to the market and the development of this strategy underscores Alliance Trust Investments’ position as a sophisticated, alpha focused, boutique investor with an entrepreneurial culture, dedicated to delivering answers to clients problems.”
