Allianz Global Investors has launched the UK Absolute Return Fund to be managed by RCM UK chief investment officer Jeremy Thomas.

The fund will aim to deliver returns greater than cash or bonds but with less volatility than equities.

Under Thomas, the fund will make stock selections based on a two-to-three year time horizon and be made up of a long and a market neutral portflio.

Thomas said, 'Sound stock selection will be the key driver of this Fund.  Our investment approach has three key pillars: Quality, Growth and Valuation.

'We believe that, taken together, they can produce consistent absolute returns over the economic cycle and through both up and down markets.'

The fund will carry a 3 per cent initial charge for individual savings account (ISA) investors or 4 per cent through a direct investment.

The new launch will also carry an annual management charge of 1.25 per cent and have a minimum investment of £500 (£1,000 through an ISA).

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