Man GLG has launched a Sterling Corporate Bond fund to be managed by Jonathan Golan, who joined the firm in July.
The fund will seek to outperform the ICE BofA Sterling Corporate & Collateralised index, while aiming for an attractive level of income.
The latter will be sought via a three-pronged approach, including in-depth credit analysis to uncover bonds that offer yields that overstate the risk of default, identifying alpha opportunities in bonds that are underperforming for reasons not related to the market, and uncovering under-researched medium-sized and smaller issuers.
The high conviction portfolio will be made up of 100-120 issuers, each with a typical credit rating of BBB to BBB+. The fund can also have up to 20% exposure to high yield bonds.
Golan said: "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."
Golan joined Man GLG in July from Schroders, where he was lead fund manager of the Schroder Sterling Corporate Bond and Schroder Strategic Bond funds.
Richard Phillips, head of UK retail sales at Man Group, said: "In today's low-yield environment, fixed income investors need active managers irrespective of the entry point, and Jonathan has demonstrated his experience and capabilities in what is a key asset class for UK investors.
"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."