UK - Baring Asset Management is to launch two hedge funds for schemes and other institutional investors.
The directional funds, which will be launched this week, aim to return 4% above three-month cash rates, or 6.1% at current interest rates.
The new dollar and euro funds follow the launch of a sterling-denominated Baring Directional Global Bond Trust in March. The fund has already attracted over £90m from investors and has delivered an absolute return of 6.3%since launch.
The dollar and euro versions of Baring’s directional fund are being launched in response to demand from investors who are concerned about the prospects for conventional bond funds.
BAM’s head of government bonds Colin Harte explained: “With difficult conditions in the bond markets and upward pressure on yields in most areas of the world, we are likely to see high levels of fixed income volatility in the future.
“International fixed income investors can take advantage of this volatility through directional investing strategies.”
The dollar and euro-denominated funds launch on Nov-ember 15, with a seven-day offer period.
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