Ignis Asset Management is starting a Luxembourg-domiciled Ucits III fund, Financial Times reports. The U.K.’s first absolute return government bond fund will be managed by Russ Oxley, head of rates and Stuart Thomson, chief economist.

The fund, which is planned to be launched by the end of March, will majorly invest in government bonds but also take long and short positions in money market instruments and derivatives. The vehicle will target low volatility and low correlation to traditional equity and bond markets. Click here for the story from Financial Times.