Man GLG has launched a sterling corporate bond fund for recent recruit Jonathan Golan.
Golan joined Man GLG’s credit team in July from Schroders, where he was lead manager of the £1.4bn Schroder Sterling Corporate Bond and £76.9m Schroder Strategic Bond funds.
His new Man GLG Sterling Corporate Bond fund seeks to outperform the ICE BofA Sterling Corporate & Collateralised index and aims to provide an income using an investment approach based on three pillars.
The first is ‘margin of safety’ which sees Golan (pictured) and the team seek bonds that overstate the risk of default. The second is ‘alpha not beta’ where the team identifies alpha through bonds that have underperformed due to not being correlated to the market. The third is ‘small is beautiful’ where the team seeks opportunities in under-researched medium-sized and smaller issuers.
The portfolio will have 100-120 issuers with a typical credit rating of BBB to BBB+ with up to 20% in high yield.
Golan said: “Savers across Britain face the lowest yielding and most challenging bond market in a generation. The effect of an ultra-low-yield world is profound and requires savers to re-think the way they invest in fixed income. The days of passively buying bonds and earning high single digit annual returns are gone. In today’s bond market, I think the optimal way to protect and grow capital is through an active approach.”
At Schroders, Golan was lead manager of the £1.4bn Schroder Sterling Corporate Bond and £76.9m Schroder Strategic Bond funds.
Man Group head of UK retail sales Richard Phillips said: “The Man GLG Sterling Corporate Bond fund is an exciting addition to Man GLG’s growing credit platform. Jonathan is an exceptionally talented fund manager who has a wealth of experience in the sterling corporate bond market and an established and well-defined investment process.”
