UK - Morley Fund Management - the investment arm of insurance giant Aviva - is to launch a high performance corporate bond fund aimed at schemes.
Morley’s MPPL High Alpha Corporate Bond Fund will be launched on October 1 and will form part of the firmís pooled fund range. The fund will have an outperformance target of 1% per annum net of fees over its benchmark, the iBoxx Sterling Non Gilt Index.
Morley said that while the bulk of the fund would be invested in investment grade securities, it would make tactical allocations to non-UK corporate debt to achieve its performance targets.
The fund will be able to invest up to 10% of its assets in emerging market and high yield bonds, and up to 20% of its assets in US dollar or euro-denominated securities.
The fund will be run by Morley corporate bond manager Roger Webb who said that while the firm wanted to access the outperformance potential of non-sterling corporate bonds, it would hedge the currency risk in order to avoid losing money due to currency fluctuations.
Morley head of consultant relationships Shona White-smith said: “Our experience is that both clients and consultants are demanding greater outperformance from their bond portfolios. The addition of the high alpha corporate bond fund ensures our pooled fund offering caters to our clients’ needs.”
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