The fund will be managed by Stuart Steven and Juan Valenzuela, and is aimed predominantly at the institutional and discretionary fund manager markets. It will source returns from a combination of asset allocation, relative value strategies and, to a lesser extent, stock selection decisions. Portfolio composition will vary significantly over the cycle, both in terms of asset allocation within fixed income markets and the split between bonds and derivative positions, the firm said.

In July this year, Alliance Trust Investments announced the closure of three of its equity funds. This was followed, in August, by the firm’s acquisition of the SRI investment business of Aviva Investors.

Alliance Trust Investments is a wholly-owned subsidiary of UK-listed Alliance Trust.