UK-based Royal London Asset Management has launched what it calls an Absolute Return Government Bond Fund, a UCITS-compliant open-ended investment company, arguing the time is now right for such a fund because bond yields and interest rates start returning to more normal levels.

UK-based Royal London Asset Management has launched what it calls an Absolute Return Government Bond Fund, a UCITS-compliant open-ended investment company, arguing the time is now right for such a fund because bond yields and interest rates start returning to more normal levels.

The Dublin-domiciled fund invests in government bonds and associated derivatives from across Group of 10 member countries and targets absolute positive capital growth over a 12-month rolling period. It is managed by Darren Bustin, head of derivatives and Paul Rayner, head of government bonds. The co-managers work with RLAM’s broader fixed interest and derivatives teams.

RLAM said its new fund will “take long-term strategic positions that reflect the managers’ views on global economic themes affecting bond markets”.

The managers will also seek to exploit shorter-term tactical opportunities that may arise, RLAM said in a statement.

(The G10 economies are Belgium, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, Switzerland, UK and US.)