Scottish Widows Investment Partnership (Swip) launches its Strategic Bond fund on Monday, managed by Roger Webb and Luke Hickmore.
The managers aim to capitalise on opportunities across government bonds, investment grade, high yield and cash markets and will be backed by Swip's fixed income team, which currently oversees £69bn in assets under management.
The fund has the flexibility to move across fixed income asset classes and search out the best returns without being constrained by a benchmark. It will initially be targeted at discretionary fund managers.
Webb joined Swip from Aviva - where he was corporate bonds investment director - last October.
"Luke and I are looking to do something with this fund which harnesses all the great bond capability at Swip," Webb says.
"As with the rest of our bond range, we have some really talented investors bringing substantial expertise to this process, helping to give us the confidence to make value enhancing decisions."
Swip head of wholesale Tony Maddock adds: "We know there is appetite among investors and room for this fund within the IMA sector.
"Swip has an exceptional fixed income capability and great confidence that we can deliver on the ambitious targets we have set for the fund - top quartile in the Strategic Bond sector."
The fund carries an initial charge of 3.75% and an annual management charge of 1.25%.
