Insight Investment Launches Absolute Return Bond Fund For Pension Plans

Insight Investment has added a new bond fund to its collection of absolute return products. The Insight Bonds Plus Fund, aimed at UK and Continental European institutional investors, aims to achieve absolute returns of two per cent per annum above

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Insight Investment has added a new bond fund to its collection of absolute return products. The Insight Bonds Plus Fund, aimed at UK and Continental European institutional investors, aims to achieve absolute returns of two per cent per annum above a cash benchmark.

The company expects pension schemes to use the Insight Bonds Plus Fund as an alpha generating component of a Liability Driven Investment (LDI) solution. It says the returns generated by the Fund can be combined with liability hedges to help close funding gaps or reduce the cost of LDI solutions for pension schemes.

“Insight’s suite of absolute return solutions is a compelling proposition for institutional investors. Building on our recognised fixed income capability, Insight can now offer pension schemes another return component for their LDI solutions to help reduce funding gaps,” says Sarah Aitken, the head of institutional business at Insight. “Indeed, the Fund launched with 300 million from an existing client who will use this as a key component of their LDI strategy. We therefore see this Fund as being a key addition to our suite of LDI solutions.”

“The strength and experience of Insight’s fixed income team enables us to create market-leading fixed income absolute return propositions for clients,” adds Adrian Grey, the head of fixed income. “The Insight Bonds Plus Fund is structured so that our fund managers have access to the widest opportunity set ranging from government bonds to emerging market debt and credit derivatives.”

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