Targeting the sweet spot of Absolute return bonds

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Absolute Return

Low yields, concerns about rising inflation and the desire to increase diversification are causing investors to look beyond traditional index-based products for their fixed income portfolio. Absolute return bond fixed income strategies can provide a robust solution.

Our absolute return strategies aim to deliver positive outcomes in a range of market conditions. We implement a flexible approach blending top-down strategic positioning with bottom-up fundamental based investment. Expertise is drawn from right across our fixed income capabilities with risk management hard-wired into our process at every stage.

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Our approach to absolute return fixed income is unconstrained and has a clear focus: the delivery of stable returns having a different profile to that of global bond markets. To do this we focus on:

  • Diversified return sources
  • Consistent absolute returns
  • Disciplined risk management
  • Liquidity
  • Varied sources of value
  • High conviction
  • Use of derivatives for alpha generation and hedging
 

Specialist Team

Our Absolute Return Fixed Income team consists of 19 investment professionals with an average of 17 years’ of investment experience and seven-year tenure at BMO Global Asset Management. Below is an breakdown of the years of experience within the team:

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GLOBAL RATES AND MONEY MARKETS
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HIGH YIELD
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INVESTMENT GRADE CREDIT
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EMERGING MARKET DEBT
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MULTI STRATEGY
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DEALING

Fixed Income Insights

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January 2022

Weekly review: Is the equity Bull market over?

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Discover how COVID-19 is accelerating automation across a host of industries and where we’re finding investment opportunities.
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Opening Bell: What will 2022 bring for global markets?

Chief Economist Steven Bell takes a look at the factors shaping 2022, and what they mean for corporate earnings and financial markets.
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Weekly review: Can equities survive surging inflation?

US inflation hits 7%, the highest for 40 years and the Fed talks tough.
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5 min watch
January 2022

Weekly review: Equites set to survive rising interest rates

It’s been a tough week for equities as bond yields rose sharply.