M&G is launching an absolute return fund for its head of retail fixed interest Jim Leaviss.
An additional managed volatility fund will also be launched for multi-asset team fund manager Tristan Hanson.
Leaviss will be joined by deputy Global Corporate Bond fund manager Wolfgang Bauer on the management of the M&G Absolute Return Bond fund, which will target GBP Libor plus 2.5 per cent a year over a three-year period. It will have ongoing charges of 0.86 per cent.
The M&G Global Target Return Fund will target 4 per cent and charges of 0.91 per cent.
M&G chief investment officer for equities, multi-asset and retail fixed interest Graham Mason says: “The current market environment is challenging for cautious and risk-averse investors, as many of the assets that have traditionally generated low-risk returns, today offer extremely low or even negative prospective returns.
“These funds have been launched with these investors in mind and aim to help them navigate a challenging market environment, while seeking reasonable returns, without being exposed to large or frequent fluctuations.”