Ignis Absolute Return Government Bond Fund
The fund aims to deliver positive returns lowly correlated to other asset classes. It is managed to take on low levels of risk, both in terms of market risk (i.e. stable returns regardless of market volatility moves) and based on target levels of volatility*. Since its launch on 31/03/2011 the fund has returned 19.64%^.
- Expertise: managed by Russ Oxley (Ignis head of rates) and co-managed by Stuart Thomson (Ignis chief economist), Adam Purzitsky (senior quantitative portfolio manager) and Paul Shanta (portfolio manager).
- Ignis rates team: is made up of nine investment professionals who manage approximately €21.6bn** in funds and mandates. The team, which specialises in government bonds, has successfully employed a unique, state of the art, proprietary rates process since 2005.
- Diversification: takes long and short positions# in the most important and liquid global government bonds and currencies. Returns are lowly correlated to traditional equity and bond funds. The fund has no corporate bond exposure.
- Positive returns in all market conditions: the fund is designed with the aim of providing investors with absolute returns (on a 12 month rolling basis).
- Investment flexibility: the fund can also invest in derivatives on interest rates, currencies and fixed or variable interest government securities to reflect the managers’ views. Foreign currency exposure limited to 25% of the risk budget of the fund.
|Fund Facts|| |
|Launch date||31 March 2011|
|Fund size||€ 3,012.2m|
|Benchmark||Cash (as measured by the overnight rate)^^|
|Share classes available in:||EUR, GBP, CHF, SEK, USD|
|Initial charge||up to 5%|
|Annual charge||A Class Shares – 1.0%,
I Class Shares – 0.50%
|Performance fee||10% of performance generated above the cash rate^^|
|Dealing time||12 noon (CET)|
Helen Farrow, Ignis Absolute Return Government Bond Fund – Quarterly Update
Helen Farrow, Fixed Income client portfolio manager, gives an update on the fund’s performance over the fourth quarter, detailing some of the key drivers behind that performance, and outlines the main themes/trade positions going into 2014.
*The fund’s target volatility is a standard deviation level of 4-6%, it will be managed with the aim of delivering stable returns regardless of market moves.
**Source: Internal at 30/06/13.
^Source: Lipper, NAV to NAV, gross income reinvested from launch on 31/03/11 to 31/12/13 based on the I2 Share Class, which is now closed to new investors and is shown for illustrative purposes only. The I Share Class has limited past performance having launched on 02/01/2013.
^^The cash level is based on the overnight rate. This is the rate that large banks use to borrow from, and lend to, one another on the overnight market. In Europe this is EONIA (European Over Night Index Average).
#The funds take long and short positions based on the fund manager's views of the market direction. This means the fund's performance is unlikely to track the performance of broader bond and equity markets. While this creates the opportunity for a fund to deliver positive returns in falling markets, it also means that a fund could deliver negative returns in rising markets.
Fitch Rating as at 07/01/14. All other ratings as at 31/12/2013. The use of independent ratings is not a recommendation to buy and does not guarantee future returns.
This information is for professional clients and investment professionals only and should not be relied upon by retail clients. All information as at 31/12/13 unless otherwise stated. The fund invests in emerging markets where companies and markets may be less regulated than in developed regions. This can increase the risk attached to those investments.
Past performance is not a guide to future performance. The absolute return nature of the strategy means it is targeting positive returns, but this is not a guarantee and investors may not get back the original capital invested.
The fund is a sub fund of Ignis Global Funds SICAV, an investment company organised under the laws of the Grand Duchy of Luxembourg as a Self Managed SICAV. It is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.