OMGI to relaunch Global Strategic Bond fund as absolute return strategy

Portfolio-Bonds-Fixed-Income-Performance-UK-700x450.jpgOld Mutual Global Investors is relaunching its offshore Old Mutual Global Strategic Bond fund as an absolute return bond fund.

Head of global bonds Mark Nash and manager Nicholas Wall will continue to run the Ireland-domiciled Old Mutual Strategic Absolute Return Bond fund.

The US$24.8m (£19.3m) fund will aim to provide uncorrelated positive returns over a 12-month rolling basis while maintaining volatility levels.

Nash says: “Absolute return funds continue to grow in popularity as investors aim to generate consistent returns in today’s uncertain and low-yielding markets. The Old Mutual Strategic Absolute Return Bond fund aims to meet investors’ appetite for stable returns, uncorrelated to market conditions.”

He adds: “The opportunity to create returns from fixed income and FX is strong given the huge changes in markets, macroeconomics and geopolitics and the outlook for great volatility disrupting current investment models. We will seek to take advantage of these opportunities via a diversified portfolio of best ideas from across the global fixed income and currency universe.”

No changes are being made to the UK-domiciled £151m Old Mutual Global Strategic Bond fund.