Ignis launches EMD absolute return fund

By on

Ignis Asset Management has added to its absolute return range with the launch of an emerging market debt fund.

The Luxembourg-domiciled Ignis Absolute Return Emerging Market Debt fund is managed by Dan Beharall (pictured).

He joined Ignis from Henderson in December 2010 to take up the post of head of emerging markets fixed income.

Beharall is supported by deputy Sailesh Lad and market analyst Mikhail Volodchenko.

The fund, which will be distributed across Europe including the UK, is based on a strategy Ignis has managed for an institutional client since January 2012, which aims to deliver a positive total return in excess of cash on a rolling 12 month basis in all types of bond market conditions.  

If it hits targets investors will be subject to 10% performance fee, which will be on top of a ‘clean’ 0.9% annual charge. It also offers a ‘super institutional’ share class with an annual charge of 0.55%.

The fund will begin life with seed capital of $100 million.

Speaking to Citywire Global's sister title Wealth Manager earlier this year, Beharall indicated how talk of tapering quantitative easing had impacted the asset class.

'Lazy money has gone into the asset class, piggy-backing the quantitative easing trade,’ said Beharrall.

‘But it will be vulnerable to a turnaround. When [Federal Reserve chair Ben] Bernanke started talking about tapering, the way people adjusted recently had a disproportionate effect on emerging market assets.’

The fund sits alongside Russ Oxley's £1.7 billion (€2.03 billion) Ignis Absolute Return Government Bond fund and a recently launched higher octane version of the fund targeting an annual return of between 8 and 12%.