GAM has expanded its absolute return bond range by launching a new fund using the existing structure of an alternative fixed income product, the group has announced.
The GAM Star Absolute Return Macro fund is the new name for the existing GAM Star Alternative Fixed Income fund, which follows a restructuring and change in the fund’s investment policy.
The new fund will be managed by Citywire + rated Tim Haywood and Mark Dragten. Haywood is the investment director business-unit head for fixed income at GAM.
Alongside the managers, newcomer Owen Job, who joined the group from Soros Fund Management in November, will be involved across the whole range of absolute return bond strategies with a focus on macro themes.
The new strategy will be a blend of discretionary investing and quantitative models, with a particular focus on fixed income and currency markets.
On the new strategy, Haywood said: ‘By combining fundamental and quantitative model driven investment strategies we aim to reduce exposure to traditional downsides of discretionary investing and improve risk-adjusted returns for our investors.’
The fund targets a low correlation to the direction of bond and equity markets, while investing in securities across both developed and emerging markets including fixed income derivatives, foreign exchange and equity index products.
Across all absolute return bond strategies, the group oversees a combined $11 billion in assets under management.
‘We are happy to now be able to offer the full spectrum of products and cater to the individual investor’s risk appetite,’ Haywood said.