Ignis Asset Management’s Absolute Return Government Bond Fund has surpassed EUR1bn in assets under management.
The fund, which was launched on 31 March 2011, has experienced a steady growth in assets under management that can be broadly attributed to four key factors (i) consistent positive returns in both positive and negative market conditions (ii) the low level of risk taken to achieve its returns (iii) the fund’s low correlation to other assets, including government bonds (iv) strong demand from institutions who are increasingly concerned about the uncertain direction of markets, bond markets in particular.
In a little over two years the fund’s investor base has broadened to include institutions, discretionary managers, wealth managers, wholesale banks, platforms and retail investors. Approximately two thirds of the fund’s clients are based in Continental Europe and one third in the UK. To date, the fund has raised assets in 14 European jurisdictions and continues to grow.
The month of May 2013 demonstrated the fund’s ability to deliver strong positive returns despite a difficult market environment for long only fixed income managers. In May, the fund returned 1.8 per cent. The fund’s longer-term track record is equally strong having delivered a total return of 13.6 per cent and an annualised return of six per cent since launch. The fund has achieved these returns while running a very low level of risk, which has been a key factor for investors. Since launch, the fund has achieved its return with a standard deviation of 3.34and an information ratio of 1.74.
Claude Chene, director and global head of distribution, says: “We are very pleased with the progress the fund has made in its first two years and are glad to have reached the important EUR1bn milestone. Most importantly the fund has achieved this by delivering what was expected by more than 150 institutional and wholesale clients that have made investments in the fund. We believe that the fund will continue to be successful by virtue of the structure of the product, the quality of the process and the team behind it. It is a fund that should benefit investors as we enter into a more challenging bond market environment.”
Philip Goldsmith, managing director, Europe, says: “I am pleased to announce the registration of a US dollar retail share class for the Ignis Absolute Return Government Bond Fund. We have launched the share class to provide additional choice for clients and to meet near-term demand from investors who forecast an appreciation of US dollar vs euro.”