RWC Partners has hired two top-performing fund managers from rival Threadneedle at a time when there is a swell in demand for absolute return funds, which typically charge higher fees for guaranteeing rewards regardless of market fluctuations.

The boutique asset management group, which has $2.2bn (€1.8 bn) of assets under management, has hired Peter Allwright and Stuart Frost to manage its absolute return and currency funds. The pair will take over the management of RWC's strategic reserve fund and launch further funds later this year "with a more flexible approach to risk".