To launch on 7 October, and seeded with £100m, the fund will presumably follow a similar approach to the phenomenally successful £4bn Ignis Absolute Return Government Bond Fund, which the team ran before Ignis was acquired by Standard Life Investments.
Lead manager Oxley, co-managers Adam Purzitsky and Paul Shanta, as well as portfolio management and trading experts Huw Davies and Jin Wong, and systems developer Josh Heming, all joined OMGI earlier this year.
The team aim to diversify from global fixed income markets by focusing on macro themes through exposure to forward interest rates, inflation expectations and foreign exchange.
The strategy has a strong emphasis on investing in highly liquid assets, with the fund’s low-correlation to global bond markets making it an appealing option when the traditional safe-haven role of government bonds is questionable.
Due to its the distinctive process and avoidance of credit and credit-like assets, and of emerging market debt, OMGI said the Fund is also likely to exhibit low correlation with other absolute return investment strategies.
“Our investment philosophy hinges on the belief that, through a detailed understanding of forward interest rates, it is possible to express views on macro trends in a very precise way,” Purzitsky said.
“Through our approach to investing, we are able to target specific risks and opportunities, without ‘inadvertently’ taking economic exposures to those risks we would rather avoid.
“At the core of our approach is the understanding that forward rates are influenced by very different factors depending on their location on the curve. We believe we have the potential to deliver positive returns for investors within clearly defined volatility parameters irrespective of the direction of interest rates.”
