Ignis Asset Management’s Ignis Absolute Return Government Bond Fund has surpassed GBP1bn 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 investors 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.
During the current correction in bond markets the fund has continued to deliver positive returns. Since its peak on 12 March 2013 the Citigroup World Government Bond Index has fallen 3.8 per cent2 while the Ignis Absolute Return Government Bond has returned 3.4 per cent. Over the same period the IMA Absolute Return Sector has returned 0.2 per cent. The fund’s longer-term track record is equally strong having delivered a total return of 15.3 per cent and an annualised return of 6.6 per cent since launch. The fund has achieved these returns while running a very low level of risk. Since launch, the fund has achieved its return with a standard deviation of 3.2 per cent and an information ratio of 1.94.
Austin McBride, head of UK retail, 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 GBP1bn 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.
“I am also 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 meet demand and provide additional choice for investors.”
The Ignis Absolute Return Government Bond Fund seeks to achieve its returns by translating macroeconomic views into carefully diversified long and short positions predominantly in the most liquid government bonds and currencies. Underlying investments are split into seven diversified sources of alpha that are carefully blended to provide a low correlation with other assets in order to deliver positive returns regardless of market conditions.