Armstrongs launch bond absolute return fund of funds

Distinction Asset Management has launched the Cautious Absolute Return fixed income fund, run by managers from BlackRock and Fidelity among others.

The new fund, which was formerly the £29 million Cautious Return fund based on a single manager model, transitioned to the multi-manager fund at the start of February.

The fund targets long-term absolute returns of 2% above cash a year, and combines top-down global macro view with bottom-up specialist manager skill.

The strategic bond funds selected include M&G Optimal Income, Newscape Strategic Bond, TwentyFour Dynamic Bond, and Investec Strategic Bond.

On the inflation-linked side, the funds include Fidelity Global Inflation Linked Bond, iShares Index Linked ETF.

The high yield side includes the Muzinich Short Duration High Yield, emerging market debt includes Investec Emerging Market Debt, Templeton Asian Bond, iShares Emerging Market Bond ETF.

Absolute Return Fixed Income exposure comprises Ignis Absolute Return Government Bond, BlackRock Absolute Return Bond and Kames Absolute Return Bond.

Dr Ana Armstrong (pictured) fund manager and chairman of Distinction, says: ‘We have designed the investment approach of this fund to take advantage of opportunities across different regions, currencies, types of fixed income instruments and a broad spectrum of markets.

‘We then outsource to specialist managers, utilising varied investment styles, to target consistent returns from a range of traditional and alternative fixed income funds and positions. The mandate is very flexible and does not force an allocation to any particular sub-set of the fixed income universe.’

Distinction Asset Management is an appointed representative of Armstrong Investment Managers.