Jupiter Asset Management has launched the Jupiter Global Sovereign Opportunities SICAV fund, targeting positive total return over the medium to long term.
The fund, managed by Vikram Aggarwal, assistant fund manager of Jupiter Strategic Bond fund and Jupiter Dynamic Bond fund, is able to invest in developed and emerging market countries, but with a focus on the latter, and may hold "up to half its value" in below investment grade securities.
Through a combination of top-down and bottom-up research, the fund will target both income and capital growth, and is able to invest in quasi-sovereigns and special situations, along with sovereign bonds, in both hard and local currency, as well as through credit, rates and FX.
The fund will be available to retail investors via platforms through an L share class, with an estimated OCF of 1.3% and minimum investment of £1,000, or D share class with an estimated OCF of 0.68% and a minimum investment of £1m.
Aggarwal said: "In today's environment of heightened uncertainty and huge volatility brought about by the global coronavirus pandemic we think an active and flexible portfolio of sovereign debt represents a compelling risk-adjusted investment opportunity.
"Sovereign debt is the largest and most liquid segment of the fixed income universe with a lower rate of default than corporate credit historically. By taking a high conviction approach we hope to offer clients a good option during this crisis, and beyond it."
Stephen Pearson, CIO, added: "Vikram has a proven track record as assistant fund manager across our two flagship flexible bond funds and as we continue to build out our fixed income capabilities, this fund was a natural next step.
"Sovereign research has been a key contributor to the ongoing success of our unconstrained bond strategy and our talented fixed income research team are well versed in selecting the very best opportunities in this space.
"We are excited to now offer clients a dedicated fund in what is, and will continue to be, a very important asset class."