Manager to launch strategic bond fund, says Fund Strategy

Liontrust plans to launch what it has termed a strategic bond fund, reports Fund Strategy today. The working-titled Deep Value fund will be headed by a recently recruited four-strong fixed income team from Ilex Asset Management and will target mis-valued credit opportunities, according to the piece.

The fund will have a wide remit, investing in high yield, investment grade corporate bonds, senior secured debt, loans and cash. It will typically be split about 80% in investment grade and 20% in high yield. It will have a global remit but will focus largely on UK and Europe, says the article. The fund will aim for a running yield of 7% and a yield to maturity of between 10% and 12%. 

As Creditflux recently reported, Liontrust is already planning to push further into the absolute return space with the launch of a fixed income absolute return vehicle shortly and the group also wants to create a Ucits version of the long/short Ilex credit fund later this year.