Legal & General, the UK insurance and investment house, has launched two new UCITs III absolute return funds focused on the UK and Europe.

The UK Absolute Fund is managed by Robert Churchlow, while the European Absolute Fund is run by Gavin Launder. 

Both funds are in the IMA Absolute Return sector and will aim to achieve a positive absolute return in all market conditions on an annual basis, the firm said in a statement. The funds will use the full range of derivative instruments permitted by the UCITS rules, providing both long and synthetic short equity exposure, the statement continued.

“There is clearly growing demand for absolute return products from the intermediary market. These two new products, which draw on our significant stock picking and risk management expertise, directly answer that demand and further strengthen our impressive active equities range,” said Ben Waterhouse, Legal & General’s sales director.

A number of UK-based firms have announced new absolute return funds over recent weeks, including Insynergy, which has launched its Absolute China Fund, and Gartmore, which has unveiled its Japan Absolute Return Fund - a UCITS III onshore version of the AlphaGen Hokuto, a Japan equity long/short strategy.