Ignis Asset Management has launched its latest absolute return strategy – the Ignis Global Macro Government Bond Fund.
The fund, which has been seeded with GBP25m, has been registered in Luxembourg as a Specialised Investment Fund (SIF) and is suitable for eligible institutional investors only.
The Ignis Global Macro Government Bond Fund is a non-UCITS version of the GBP1.5bn UCITS compliant Ignis Absolute Return Government Bond Fund. The Ignis Absolute Return Government Bond Fund has delivered a total return of 18.5 per cent and an annualized return of seven per cent since launch. Most importantly, the fund has achieved these returns with a very low level of risk.
The Global Macro Government Bond Fund will share the same team, process and strategy as the Ignis Absolute Return Government Bond Fund; however, risk will be doubled. Accordingly, the fund will target a higher volatility of eight per cent to 12 per cent and a higher absolute return of 10 per cent to 12 per cent per annum over cash.
The fund will achieve its target returns by translating macroeconomic views into carefully diversified long and short positions predominantly in the most liquid government bonds and currencies. Underlying investments will be split into seven diversified sources of alpha that will be carefully blended to provide a low correlation with other assets in order to deliver positive returns regardless of market conditions.
Claude Chene, global head of distribution, says: “This fund will appeal to well-informed investors who may already value the Ignis Absolute Return Government Bond Fund but are looking to target a higher level of risk for a higher potential return.
“The fund builds upon Ignis’ strong track record in managing absolute return strategies and is being launched in response to specific demand from existing and prospective clients.”