Ignis unveils best ideas absolute return credit fund
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Ignis Asset Management has launched its absolute return credit fund under the management of head of credit Chris Bowie.
The best ideas fund is a market neutral offering which targets a volatility range of 2-6 per cent, as well as having zero duration and interest rate risk.
The fund will focus on investment grade and high yield credit through credit default swaps. The absolute return credit fund will operate a portfolio of 10 to 30 pair trades to “exploit value opportunities”.
The fund, which is seeded with £20m of internal and third party assets, has strong downside risk control which will see a position cut automatically at -50 basis points.
The annual management charge on the fund is 0.5 per cent as well as a 10 per cent performance fee above cash rate. Minimum investment is set £1,00 for retail investors.
Bowie says: “We have chosen to launch the fund at this time given the many headwinds building for traditional long only credit investment. Following a strong and protracted bull market for credit I believe we are now facing a prolonged period of volatility, minimal economic growth in the near term and a possible correction for credit markets in the not too distant future.
“By investing in highly liquid credit default swaps the fund will not be impacted by decreasing levels of liquidity in the cash corporate bond market. I and members of the Ignis credit team have personally invested in the fund.”
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