Standard Life Investments has launched a new version of its global absolute return strategies fund. The fund, which will invest in the global bond markets, will be run by the same multi-asset team in charge of the firm’s popular Global Absolute Return Strategies fund, currently worth £7.3 billion ($12 billion).

The Standard Life Absolute Return Global Bond Strategies fund, which launched in March, is a UCITS III fund. It differs from GARS fund in that it is based in Luxembourg rather than the UK - although denominated in sterling - and it trades in global fixed income securities rather than across a wide range of global asset classes.

The fund invests in credit and government bonds, investment grade, high yield, interest rates, yield curve, inflation, foreign exchange, cross-market and volatility, said to be based on both the multi-asset team’s macro-economic expertise and the fixed income team’s tactical work.

Over rolling three-year periods, the new fund will aim to provide an annual return 2.5 per cent greater than cash.

The firm has appointed Euan Munro, head of multi-asset investing and global fixed income, David Millar, investment director for multi-asset management, and investment directors for fixed income, Ian Pizer and Roger Sadewsky, to run the fund.