Franklin Templeton is to launch an Absolute Return Bond fund.
The fund, called the Franklin Absolute Return Bond fund, will be managed by the US-based team of David Yuen and Michael Materasso.
The fund will aim for a return of between 2 and 3 per cent above the London Interbank Offer Rate (Libor) over what it terms the cycle, a time period it envisages to be three to five years.
It will invest in both fixed rate, and floating rate securities and also use derivatives to deliver returns.
Mr Yeun said: "We are excited to bring this strategy to UK investors and offer an unconstrained, risk focused approach where volatility is managed.
"Our investment process leverages the in-depth knowledge of our experienced fixed income teams globally and our approach with dynamic sector rotation, active currency management, security selection and relative value positioning, while aiming to manage risks such as duration."
Darius McDermott, managing director of Chelsea Financial Services, said Franklin Templeton has a strong reputation as fixed income managers globally, though less so in the UK.
He said: "When we look at absolute return funds it is the target and risk they take that is key to us.
"The target is 2 to 3 per cent above Libor so that is not that ambitious."