The fund will be managed by Janus Capital Management in partnership with Armored Wolf.
According to the company, its new fund will invest primarily in real asset strategies designed to generate attractive absolute, risk-adjusted returns while providing an active hedge against inflationary trends.
The fund will allocate its assets among six sleeves: inflation-linked bonds, commodities, emerging market debt, emerging market equity, global real estate and short-term bonds.
Primary oversight of Janus Real Return Allocation Fund will be provided by an allocation committee consisting of Gibson Smith, co-CIO for Fixed Income at Janus and John Brynjolfsson, managing director of Armored Wolf.
They will be responsible for determining the allocations between each sleeve as market conditions dictate, said Janus Capital.
Brynjolfsson said with the current rate of inflation at historically low levels, investors should prepare for higher levels of inflation in the coming years.
"I think it’s going to be important to invest in multiple asset classes that exhibit low historical correlations to equity and fixed income markets as a hedge against rising inflation," Brynjolfsson added.
