Ignis Asset Management has confirmed it is planning to launch an absolute return fund for head of credit Chris Bowie in the summer.
The intention to launch an absolute return bond fund was first revealed by Money Marketing in June last year.
Bowie, alongside 15 members of the credit team, will manage Ignis’ new absolute return credit fund, the second product in the absolute return range. Ignis already has the absolute return government bond fund.
Bowie says: “We have been running our absolute return credit strategy on a shadow basis for approximately a year with a great deal of success. We believe the timing of the launch is now pertinent given the headwinds facing traditional long only credit investment.”
He adds: “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.
“Given this backdrop I, and other members of the team, will be personally investing in the fund from launch.”
The new fund will be a pure alpha, best ideas, absolute return credit fund and will focus on investment-grade and high yield credit by means of liquid credit default swaps.
It will have a minimum investment of £1,000 and an annual management charge of 0.5 per cent on both share classes.