The Ignis Global Macro Government Bond Fund will invest in a range of assets including sovereign bonds, supra- and sub-sovereign bonds, financial derivative instruments based on sovereign bonds yield curves, inflation linked versions of the aforementioned and currency forward positions and options.
The fund will have a target return of 8% – 12% per annum, with no initial fee, a 1% annual management charge and an as yet undecided performance fee.
The non-Ucits hedge fund, domiciled in Luxembourg, aimed at investors across the globe. There will be a minimum £150,000 investment, and dollar, sterling, euro, Swedish krona and Swiss frank share classes.
The fund is yet to receive regulatory approval and so details may change.
The firm is also considering raising an absolute return emerging market bond fund, and currently runs an absolute return emerging market fund for their parent group’s (Phoenix) policyholders.
A spokesperson for the company said: “The fund is a non-Ucits unconstrained version of the highly successful £720m Absolute Return Government Bond product (ARGBF) that has returned 12.35% since launch (April 2011) with a low level of volatility and an information ratio of close to 2%.
"It will be made available to ‘well-informed’ investors who may already be invested in the ARGBF, or who value the Ignis rates capability but wish to have a greater risk exposure than ARGBF can offer. We are launching the fund following considerable demand from existing and prospective clients."