The international arm of New York-listed Janus Capital Group has expanded its fixed income offering for European investors.

Janus Capital International has launched the Janus Absolute Return Income Fund, targeting capital preservation and income generation.

The fund, which will focus on risk management and low volatility, aims to generate positive absolute returns over a full market cycle. It will invest in a combination of sovereign, corporate and securitised bonds, as well as an overlay of structural opportunities, aiming to take advantage of long-term mispricing.

The fund is available to investors in Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden and the UK. 

Its launch follows the firm's acquisition of Kapstream Capital, an Australian fixed-income manager with $7.2 billion in assets, as at the end of 2015. As part of the acquisition, Kumar Palghat, co-founder of Kapstream, joined Janus and became a co-portfolio manager of the Global Unconstrained Bond Fund, managed by Bill Gross.

Palghat will lead the new fund, supported by portfolio managers and Kapstream colleagues Nick Maroutsos and Steve Goldman.

“The Janus Absolute Return Income Fund offers investors a highly differentiated approach to traditional fixed income investing. It aims to avoid the limitations of a duration-weighted benchmark and narrow investment guidelines, instead seeking investments from across global fixed income markets,” said Palghat.