Skandia Investment Group (SIG) has invested £19m in the Liontrust Credit Absolute Return fund to help hedge against an uncertain outlook in goverment bonds.
The fund, which is run by Simon Thorp and James Sclater, invests in long/short European credit.
The asset class has been coming under stress in certain areas due to sovereign debt troubles in the eurozone.
In countries such as Germany, by contrast, yields have remained remarkably subdued.
Adam Smears, the head of fixed interest research at SIG, says: “As government bond yields are now very low – although credit spreads are still relatively wide – it is important that managers can go short as well as long, allowing them to generate returns in many different environments.” (article continues below)
SIG will be adding the fund to its Diversified, Bond Income and Alternative Investments funds, among others.