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New fixed income boutique launches

Former UBS fund manager Chris Baylis, billionaire investor Alex Waislitz and ASX-listed cash platform Cashwerkz have teamed up to launch a new funds management businesses.

Fortlake Asset Management is offering four funds, across retail, wholesale and institutional.

Alex Waislitz's Thorney is major shareholder, and he or Martin Casey will have a non-executive directorhip on the five-person board.

"We are excited by the opportunity to be working with Christian and his team. He is a best in class manager with a clearly demonstrable track record. In the current low interest rate environment, the performance of a fixed income manager is more important than ever," Waislitz said.

The investment team includes Chris Baylis, formerly the lead portfolio manager for the UBS Cash Plus Fund and the Insurance and ALM book, as founder and chief investment officer.

Kylie-Anne Richards, formerly a portfolio manager at prop trading firm QTR Capital, is the head of ESG.

Peter Higgs, founder of Brisbane-based specialist global derivative and currency overlay asset management firm TGM, is the chair of the board and the investment committee. All three have post doctorates, Baylis in econometrics, Higgs in economics and Richards in math.

In operations, former FIIG Securities head of client services Andrew Kidd is Fortlake's chief operating office, while former Prodigy Investment Partners head of distribution Guy Ballard is the head of distribution.

Cahwerkz's fund incubation business via Trustees Australia Limited will launch the business. Its chief executive Jon Lechte also has a non-executive directorship, and Cashwerkz has a stake in Fortlake.

"We are delighted to bring the Fortlake Asset Management business to market, our first fund within the Fund Income business. The quality of the people within the business and the partners to the business, is a great example of the high standards we have within Fund Income," Lechte said.

"Over time Fortlake and the Bond Income business will have some shared capability and synergy, Dr Baylis delivers the opportunity for collaboration with the best market insight and expertise to also provide individually managed accounts (IMAs)."

Fortlake will use J.P. Morgan, Tactical Global Management Limited (TGM) and Link Fund Solutions.

The four funds are: Fortlake Real-Income Fund (for retail investors targeting 3% over RBA cash rate), Fortlake Real-Higher Income Fund (for retail investors targeting 5% over RBA cash rate), Fortlake Real Opportunities Fund (wholesale investors, absolute return) and Fortlake Sigma Opportunities Fund (wholesale, targeting 8-11% above the RBA cash rate).

Read more: Alex WaislitzChris BaylisCashwerkzFortlake Asset ManagementJon LechteKylie-Anne Richards
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