Moneymarketing.co.uk this week revealed that the fund is in the final design stages.
Managing director of retail investments John Clougherty says the group sees a gap in the current absolute return market, with any potential launch likely to be a “plain vanilla” offering.
He says: “What we are keen to have is something that does not have a black box approach as this is exactly what investors do not want at this time. Any launch is likely to sit at the safer end of the absolute return market.”
Money Marketing understands that Old Mutual Asset Management is also looking to launch an absolute return fund.
Hargreaves Lansdown senior analyst Meera Patel says: “I am not surprised that we are seeing more absolute return launches, particularly from groups such as OMAM, who have a strong hedge fund team.”