The revamped fund will use a combination of discretionary investing and quantitative model driven strategies and will employ leverage to achieve target annualised returns of 8 to 10% above Libor.
It belongs to GAM’s absolute return bond range, which has more than $11bn in assets under management.
The fund’s portfolio will invest primarily in fixed income and currency markets and has the flexibility to utilise the equity market, aiming to provide low correlation, while maintaining a high degree of liquidity.
Managed by Tim Haywood and Mark Dragten, it will invest in securities across developed and emerging markets, such as fixed income derivatives, foreign exchange and equity index products.
Haywood, an investment director and head of the team in charge of GAM’s absolute return bond suite, said: “We are happy to now be able to offer the full spectrum of products and cater to the individual investor’s risk appetite.
“By combining fundamental and quantitative model driven investment strategies we aim to reduce exposure to traditional downsides of discretionary investing and improve risk-adjusted returns for our investors.”
Additionally, Owen Job, who has joined GAM from Soros Fund Management in November, will contribute across all absolute return bond strategies, specifically focusing on macro themes.
