Baring Asset Management (Barings) has expanded its absolute return fund range with the launch of the new Baring Dynamic Absolute Return Fund.
The new vehicle will utilise long and short strategies in order to offer a market neutral return over a three-year rolling period.
The fund will aim to identify absolute value, as well as relative value opportunities, holding between 10 and 20 diversified market strategies at any given time.
It will be managed by James Ind and Barings’ multi-asset team. Barings intends to register the fund in Austria, Denmark, Finland, France, Germany, Luxembourg, Norway, Spain, Sweden, Switzerland and the UK.
Ind said: "Investment returns are under significant pressure, with a third of the sovereign bond universe offering negative yields. The need for alternative funds to diversify traditional growth assets is driving significant fund search activity.
"Using top-down investment models, the Baring Dynamic Absolute Return Fund will be agnostic as to overall market direction. Use of long and short strategies as well as derivatives will allow the fund to adapt to different market regimes."