Ignis poised to unveil absolute return bond vehicle

Ignis is eyeing the launch of its first internal retail fund since 2007 with an absolute return bond mandate for its rates team.

The fund, which will be based on an existing institutional product, uses a methodology devised by Russ Oxley, the group’s head of rates. Oxley will run the product with Stuart Thomson, Ignis’ chief economist and member of the rates team. According to Thomson, the process breaks down the yield curve into discrete one-year forward rates, giving a different picture when compared to simply analysing the yield curve. “We do not just look at a 10-year gilt as a 10-year bond. We look at it as if it is a series of 21 cashflows in terms of coupons and the principle rebate at the end,” Thomson ...