Janus Henderson Investors has launched an absolute return fixed income fund to sit in the IA Targeted Absolute Return sector heralding what one commentator believes could be a stream of similar products.
The asset manager announced on Tuesday that the fund has Ucits status, is denominated in sterling and registered in England and Wales. It will aim to provide positive returns across various market environments, with a focus on low volatility and capital stability.
Adrian Lowcock, head of personal investing at Willis Owen, said: “I think this is an interesting launch and a reminder for investors of the unique times we are in. Such strategies are likely to appear more and more as fund managers look for ways to get exposure to bonds after what has been a strongly performing asset class.”
The fund will be co-managed by Nick Maroutsos, co-head of global bonds, portfolio manager Dan Siluk, and credit portfolio manager Tim Winstone, supported by a team with an average investment experience of 18 years.
The fund will follow the same investment approach as the existing absolute return income strategy, which is currently $9.3bn (£7bn) in size.
Derivatives can appeal
Lowcock said investors no longer need interest rates to fall to make money because they can use derivatives and duration to generate returns while protecting capital.
“This sort of world of low rates these approaches can appeal as they can add value through strategic and tactical positioning of the portfolio,” he said. “Using derivatives and being able to invest globally gives the managers a huge amount of flexibility which means in theory at least, they should be able to make money in almost any market conditions.”
Maroutsos added: “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.”
