Armstrong launches multi-manager absolute return bond strategy
From Product News Feb 10 2012 BY: Esther Armstrong
, Senior Reporter
, Portfolio Adviser
Distinction Asset Management, a partner of Armstrong Investment Managers, has relaunched its Cautious Return fund as a multi-manager fixed income absolute return vehicle.
Previously run by a single manager, the Ucits III compliant Dublin-domiciled fund has been managed by Armstrong Investment Managers as a multi-manager strategy since the beginning of February. Targeting long term positive returns of 2% above cash per annum, the new vehicle includes strategies managed by BlackRock, Fidelity and Investec.
AIM said the fund is designed for investors “seeking exposure to fixed income markets but with much greater flexibility than a more traditional approach”.
Ana Armstrong, fund manager and chairman of Distinction, said: “We have designed the investment approach of this fund to take advantage of opportunities across different regions, currencies, types of fixed income instruments and a broad spectrum of markets.
"We then outsource to specialist managers, utilising varied investment styles, to target consistent returns from a range of traditional and alternative fixed income funds and positions. The mandate is very flexible and does not force an allocation to any particular sub-set of the fixed income universe.”
Funds selected include:
Strategic bond funds: M&G Optimal Income, Newscape Strategic Bond, TwentyFour Dynamic Bond, Investec Strategic Bond
Inflation-linked: Fidelity Global Inflation Linked Bond, iShares Index Linked ETF
High yield: Muzinich Short Duration High Yield
Emerging market debt: Investec Emerging Market Debt, Templeton Asian Bond, iShares Emerging Market Bond ETF
Absolute return fixed income funds: Ignis Absolute Return Government Bond, BlackRock Absolute Return Bond, Kames Absolute Return Bond