Ignis Asset Management has launched an absolute return government bond fund for institutional investors designed to double the risk of its existing Absolute Return Government Bond fund.
The Ignis Global Macro Government Bond Fund is a non-Ucits hedge fund that will be domiciled in Luxembourg as a Specialist Investment Fund (SIF) and which aims for an absolute return of between 10% and 12.
The fund will be run by the rates team, led by head of rates Russ Oxley. The team can run both long and short exposures, predominantly in the most liquid government bonds and currencies.
It will follow the same investment process and implement the same tradeable instruments as the Absolute Return Government Bond fund, but with two times leverage, targeting a higher volatility of between 8% to 12%.
Its upcoming launch was initially announced by Ignis back in March this year.
Commenting on the launch, Ignis’ Global Head of Distribution Claude Chene:
'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.'
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.
The minimum investment for the fund, which has been seeded with £25 million and is suitable for eligible institutional investors only, is £150,000. It will be available in multiple share-classes, including sterling and euro-hedged.
'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,' added Chene.