Investec Asset Management has launched a Global Total Return Credit fund, a UK replica of its SICAV fund, managed by Jeff Boswell and Garland Hansmann.
It will seek 80 to 120 investment opportunities across global credit to create a diverse portfolio, which is high-yielding and defensive with low volatility and low sensitivity to interest rates.
It aims to achieve a total return in excess of 3-month LIBOR plus 4% per annum over a full credit cycle (gross of fees) with an expected volatility of 5% to 7% per annum.
Sitting in the IA Strategic Bond sector, it will adopt a multi-asset credit approach and be unconstrained.
Boswell and Hansmann will be the fund's managers, who already manage the SICAV version which was launched last June, and supported by Investec's credit team.
David Aird, managing director, UK client group at Investec Asset Management, said the decision to launch a UK version following client feedback and it would be seeded by JLT Investment Solutions.
"As traditional fixed income continues to fail to deliver meaningful returns, investors should protect against the double whammy of persistent low yields coupled with the potential impact of rising rates.
"Many UK clients are wising up to the fact that government bonds could generate severe losses in this environment, and are seeking an alternative to, for example, strategic bond funds."
Boswell said: "Investors are increasingly focused on sourcing attractive income streams. We believe this solution is well positioned to provide access to an unconstrained credit portfolio that aims to deliver on the requirement for enhanced yield."
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