Glasgow-headquartered Ignis Asset Management has confirmed that, subject to regulatory approval, it will launch a high-return version of its existing Ignis Absolute Return Government Bond Fund this summer.

The new vehicle, the Ignis Global Macro Government Bond Fund, will be managed by a nine-strong rates team, including Russ Oxley, head of rates, Adam Purzitsky, senior quantitative portfolio manager, rates, Paul Shant, portfolio manager, rates; and Stuart Thomson, co-manager and chief market economist. The team will be overseen by Chris Fellingham, chief investment officer.

The fund is a non-UCITS unconstrained version of the £720 million (around $1 billion) Absolute Return Government Bond Fund, which has returned 12.35 per cent since launch (31 March 2011). The new fund will still be low risk, but with a higher "target" return of between 8 per cent and 12 per cent per annum, the firm said in a statement.

The fund will follow the same investment process and will implement the same tradable instruments as the Absolute Return Government Bond Fund, but with 2x leverage. Exposures can be both long and short, and will predominantly be in sovereign bonds, among others.

Minimum investment is £150,000.

Ignis Asset Management had £68.7 billion in assets under management at end September 2012.