Old Mutual Global Investors is to launch an Absolute Return Government Bond fund for former Ignis fund manager Russ Oxley.
The fund will launch on 7 October and will be seeded with £100m from the firm.
Oxley, who joined OMGI at the start of this year, will be the lead manager of the fund helped by co-managers Adam Purzitsky and Paul Shanta.
Previously the team managed the £4.2bn Ignis Absolute Return Government Bond fund, which was acquired by Standard Life Investments before the team’s departure.
The new OMGI fund will aim to deliver positive returns on a rolling 12-month basis and will be uncorrelated to bond and equity market conditions. It will target cash plus 5 per cent per annum.
Old Mutual Global Investors managing director Warren Tonkinson says the team has done “a lot of work” to prepare for this launch.
He says: “We have had a lot of interest from investors as Russ and his team are highly respected, having one of the best track records of managing absolute return government bond funds in our industry. We are confident that demand will be strong from our global client base.”
Purzitsky also says: “Through our approach to investing, we are able to target specific risks and opportunities, without ’inadvertently’ taking economic exposures to those risks we would rather avoid. At the core of our approach is the understanding that forward rates are influenced by very different factors depending on their location on the curve.”