Janus launches Absolute Return Fund

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Janus Capital’s Global Macro Fixed Income team is launching its second fund – the Janus Absolute Return Fund.

The launch stems from the acquisition in December of Australian-based Kapstream Capital, an unconstrained fixed-income manager with $7.2bn (£4.98bn) in assets.

Kapstream co-founder Kumar Palghat will run the fund, which aims to provide capital preservation and income generation.

Janus says the fund is complementary to the existing Unconstrained Bond fund, managed by Bill Gross.

Palghat says the new fund provides a “highly differentiated approach to traditional fixed income investing”.

“It aims to avoid the limitations of a duration-weighted benchmark and narrow investment guidelines, instead seeking investments from across global fixed income markets.

“The portfolio will combine a core of investment grade sovereign, corporate and securitised bonds, as well as an overlay of structural opportunities, while taking advantage of long-term mispricings.”

The fund’s A-share class has an initial fee of 5 per cent and an ongoing charge of 1.25 per cent.