Fund house M&G is preparing to launch a bond portfolio and a multi-asset product as part of its first push into an absolute return sector which has dominated flows this year.
Investment Adviser understands that the absolute return bond fund will be managed by head of retail fixed interest Jim Leaviss and Wolfgang Bauer, targeting an annual return of cash plus 2.5 per cent.
Mr Leaviss is already a listed co-manager on six of M&G's fixed income funds, while Mr Bauer works on the Global Corporate Bond and European Corporate Bond offerings.
While the asset manager is well known for its fixed income and equity offerings, it does not yet offer any products in the absolute return space. Investor caution over both equity and bond markets has seen the IA Targeted Absolute Return sector take in £3.5bn in net flows this year - more than three times the next most popular grouping.
M&G is also readying an absolute return multi-asset fund to be run by former Ashburton Investments' asset allocation head Tristan Hanson. The asset manager hired Mr Hanson earlier this year, and said at the time it was seeking to expand into the absolute return space.
The company declined to comment.
