M&G is launching an absolute return fund for its head of retail fixed interest Jim Leaviss.
An additional managed volatility fund will be launched for Tristan Hanson.
Leaviss will be joined by Wolfgang Bauer on the management of the M&G Absolute Return Bond fund, which will target GBP Libor 2.5 per cent a year over a three-year period. It will have ongoing charges of 0.86 per cent.
The M&G Global Target Return Fund will target 4 per cent and charges of 0.91 per cent.
Graham Mason, Chief Investment Officer for M&G equities, multi-asset, retail fixed interest, says: “The current market environment is challenging for cautious and risk-averse investors, as many of the assets that have traditionally generated low-risk returns, today offer extremely low or even negative prospective returns.
“These funds have been launched with these investors in mind and aim to help them navigate a challenging market environment, while seeking reasonable returns, without being exposed to large or frequent fluctuations.”