Ignis to launch global absolute return bond fund for Bowie
Ignis Asset Management is set to launch a global absolute return bond fund for head of credit Chris Bowie.
The Luxembourg-domiciled Absolute Return Credit fund is due to launch this summer, subject to regulatory approval, and will be managed by Mr Bowie and his 15-strong credit team, which currently runs in excess of £13bn.
The fund will be a best ideas, pure alpha, market neutral vehicle, designed to have a low level of volatility with a low correlation to other asset classes.
The manager will invest globally in investment grade and high yield, via liquid credit default swaps, while looking to identify pricing dislocation through pair trades.
Mr Bowie has been running the portfolio on paper for the past year and said now was the time to launch “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,” he said
The manager added that he, along with members of the team, would personally be investing in the fund when it launches.
The vehicle will sit in the IMA Absolute Return sector and have an initial charge of 5 per cent, with an annual management charge of 0.5 per cent. It will also have a minimum investment of £1,000.
It will also have a performance fee of 10 per cent of returns generated above the cash rate.
The fund is the second absolute return product launched by Ignis, following the Absolute Return Government Bond fund in March 2011.