Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

Ignis' AAA-rated Bowie to launch global absolute return bond fund

by Emma Dunkley on Apr 30, 2012 at 16:18

Ignis Asset Management is to launch an absolute return credit fund for Citywire AAA-rated Chris Bowie, targeting a return of cash plus 5% in all market conditions.

The Luxembourg-domiciled fund, which is set to launch in summer subject to regulatory approval, will be a best ideas, pure alpha and market neutral product, designed to deliver a low level of volatility and low correlation to other asset classes.

Bowie, who is head of credit portfolio management at the firm and manager of the £255 million Ignis Corporate Bond fund, will work with his 15-strong credit team in running the new product.

The credit team, which manages in excess of £13 billion, will invest globally in investment grade and high yield credit, via liquid credit default swaps. The fund will aim to exploit relative value opportunities through pair-trades, by identifying pricing dislocations in markets.

The fund also has stringent stop-loss limits, so it can cut positions quickly if necessary. There is an immediate review of the trade if it falls to 25 basis points of the total fund, and there is an instant cut if a trade falls to 50bps.

Bowie said he is not anticipating making money from a default, but is playing relative value from the pair trades. He added the fund will also largely invest in European and US CDS, as they are the most liquid markets. Although the base currency is in euros, it is hedged back to sterling for the GBP share class. 

Bowie said: ‘We believe the timing of the launch is now pertinent given the headwinds facing traditional long only credit investment.

‘Eurozone weakness, low bank creditworthiness, poor economic data and inflationary pressures are real concerns, and at the very least we are forecasting a prolonged period of volatility for credit markets. Given this backdrop I, and other members of the team, will be personally investing in the fund from launch.’

He added: ‘We believe the future is in the absolute return space and we think credit is the next one to exploit. I also think one of the key risks to bond investors is yield volatility – or beta – therefore we think investors should have something like this in their toolset to extract alpha.’

Bowie said the fund has been compared with a range of indices and sectors, from sterling credit to high yield emerging bond indices, and has found this fund has zero correlation with all other asset classes.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Ignis Corporate Bond Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Chris Bowie
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet