Specialist fixed interest manager Omega Global Investors is set to launch the High Investment Credit Opportunities Fund for institutional investors.
"The fund will provide investors with access to high investment grade credit," Omega managing director George Vassos said.
Vassos said high investment grade credit would have an important role to play in portfolios as superannuation funds looked to separate sovereign debt from credit strategies in their fixed income allocations.
The manager will look at sourcing credit opportunities in non-financial stocks.
"With the continued uncertainty around the financials sector, there are many opportunities in non-financials," Omega director of investments Matthew McCrum said.
"We believe that there is still significant risk in financial companies as a result of the continuing deleveraging process."
The fund will be benchmark unaware and will be actively managed. The portfolio will invest in 125 to 150 securities.
"Benchmarks [in the fixed income markets] are currently inefficient as they are heavily weighted to the largest issuers and, as such, favour borrowers rather than investors," McCrum said.
Sub-investment grade, structured or mortgage-backed securities will not be included in the portfolio.
The fund is currently looking for seed funding. Once funding was secured, the fund would be marketed to the retail sector, Vassos said.
