Among the planned new funds is an absolute return global government bond product, which will most likely be Luxembourg-domiciled and aimed at retail and institutional investors. It has been designed as a low-risk investment and will target returns of cash plus 3%.
A new emerging market product is also understood to be in the pipeline. The new fund, thought to be a repositioning of an existing portfolio, is likely to have a value-based style, driven by a proprietary quant model that will determine country allocation. It is believed that exposure to emerging markets will be achieved through ETFs and derivatives rather than stocks.
The new funds have in part been developed as a result of Ignis, the UK-based asset management arm of Phoenix Group, a London Stock Exchange-listed closed life assurance fund consolidator, reviewing its product range as it bids to increase European distribution.
In July 2009, Ignis hired many of the European sales team of what was then called Henderson New Star.
Led by Philip Goldsmith, the team had itself become part of Henderson as a result of its acquisition that year of New Star Asset Management. In 2010, Ignis hired further resources to cover the Nordic region and has been targeting European institutional and discretionary wealth markets.
In another new product development, a credit long-short fund managed by Castle Hill Asset Management is now available to investors. Castle Hill was created when a credit team was spun out of Ignis in late 2009, and remains in “strategic partnership” with Ignis.
