Janus Henderson has today launched the Janus Henderson Absolute Return Fixed Income Fund to fill the gap between money market funds and conventional core fixed income.

The fund has UCITS status, is denominated in sterling and registered in England and Wales. It will sit in the Investment Association’s Targeted Absolute Return sector.

The fund is managed by a team with over 10 years experience in absolute return fixed income investing.

The co-managers will be Nick Maroutsos, co-head of global bonds, Dan Siluk, portfolio manager and Tim Winstone, credit portfolio manager, supported by a team with an average investment experience of 18 years. 

In 2006 Nick Maroutsos and Kumar Palghat co-founded Kapstream, a group that specialised in global absolute return fixed income. The new fund will utilise the same investment approach as the existing Absolute Return Income strategy, which currently has approximately £7.1bn invested.

The fund will aim to provide positive returns across various market environments, says Janus Henderson.

The managers says they will invest in a core of shorter maturity, globally diverse investment grade securities, alongside a small number of derivatives-based strategies that are used to manage downside risks and generate additional return.

 Mr Maroutsos said: “Our aim is to provide positive returns but with an emphasis on low volatility and low correlation to other asset classes. We start with a clean slate, not a benchmark index, and look globally for opportunities to generate income and capture relative value. The launch of this fund allows us to optimise our core investments to maximise risk-adjusted returns for investors based in the region.”  

Simon Hillenbrand, head of UK retail, added:  “We are excited to bring this proven absolute return fixed income approach in a form that has appeal to clients in the UK. We believe it provides a complementary strategy to traditional benchmark-orientated fixed income funds.”