Psigma launches inflation-plus strategy for fixed income investors

Psigma Investment Management has launched a fixed interest strategy which aims to produce inflation-beating returns and give a diversified credit exposure.

The strategy is aimed at charities and pension funds and it aims to produce a net return of 4-7% a year from a range of underlying UK and overseas credit opportunities. Psigma said that the strategy invests in funds from managers such as Allianz Global Investors, Neuberger Berman and TwentyFour Asset Management. It added that some of the funds it uses are bespoke, so can only be accessed via this vehicle. Psigma senior investment director for charities and pension investments, Andrew Wauchope, commented: “The recent pickups in both RPI and CPI are powerful reminders that inflation continues to threaten the assets of charities and pension funds in addition to private clients, but in the current environment traditional hedges such as equities face a variety of challenges, not least from valuations which are near record highs.” Psigma head of investment strategy, Rory McPherson, added: “By blending the most attractive parts of the broad market we provide a different, less conventional approach which we believe offers much more attractive risk and return profile for the next stage of the fixed interest cycle and beyond.”