Swiss asset manager GAM has introduced a new dynamic credit fund on its systematic platform.
The new strategy will take long positions in credit markets.
In case of negative market conditions, the strategy can lower exposure or begin shorting credit.
At the same tine, it will have the capacity to stay long on safe-haven fixed income during adverse markets.
Managed by the GAM Systematic investment team, the vehicle will invest in US and European government bond futures.
It is also said to offer exposure to the “most liquid names” within a universe of around 400 single credits.
The fund’s investment approach integrates tactical credit, directional credit and market neutral credit.
These are said to be similar to a credit trader, credit strategist and credit analyst.
GAM Systematic co-head Anthony Lawler said: “Investors are increasingly looking for diversifying investments for their portfolios.
“The dynamic credit strategy meets this need. It offers credit returns, but is also equipped with crisis indicators which seek to reduce portfolio credit risk in challenging markets and thereby diversify returns away from traditional credit allocations.”
GAM has been going through troubled times in the recent times.
Last year, the company suspended head of its absolute return bond fund range Tim Haywood after an internal probe.
The probe unveiled breaches in his risk management and record keeping processes.
Soon after, the company liquidated the ARBF range.
The latest credit fund is one of the first strategies launched by GAM since the ARBF liquidation.