Ignis unveils high-octane absolute return government bond fund

Ignis Asset Management is set to launch a high-octane version of its £720 million Absolute Return Government Bond fund, targeting a return of between 8% and 12%.

The Ignis Global Macro Government Bond fund will be run by the rates team, comprising Russ Oxley, chief economist Stuart Thomson (pictured) Adam Purzitsky and Paul Shanta, overseen by fixed income chief investment officer Chris Fellingham.

The fund, which is planned for launch in the summer, will follow the same investment process and implement the same tradeable instruments as the Absolute Return Government Bond fund, but with two times leverage.

The team can run both long and short exposures, predominantly in sovereign bonds, financial derivative instruments, based on sovereign bond yield curves, inflation-linked sovereign bonds and currency derivatives.

The product is a non-Ucits hedge fund that will be domiciled in Luxembourg as a specialist investment fund. It will target global wealth managers, private banks, family offices, fund of funds, managed account platforms and institutions.

As the fund targets sophisticated investors, the minimum investment is £150,000. It will be available in multiple share-classes, including sterling and euro-hedged.

The fund, which is subject to regulatory approval, will be available for sale in the UK and Europe and will have a 1% annual management charge and performance fee, the latter of which is yet to be finalised.

The Absolute Return Government Bond fund has returned 12.35% since launch in April 2011 and is benchmarked against three-month Libor.