Absolute Return
Record low bond 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 BMO Global Absolute Return Bond fund has a long-bias, with the flexibility to go short rates and credit. This provides greater flexibility and downside protection.
Focusing on shorter dated maturities reduces the impact of business and credit cycles. High diversification to individual issuers reduces the likelihood of a shock.
Learn more about this sophisticated solution for investors looking for greater certainty of outcome in today’s low-yield environment.
Simplicity
- Daily dealing return target: Cash +4%
- Strategic decisions by experienced market professionals
- Liquid investment strategy with daily dealing
Flexibility
- Unconstrained approach creates a wide opportunity set independent of traditional indices
- Ability to create positive returns in a negative market environment
Greater certainty
- Focus on shorter dated maturities reduces the cyclicality of the returns
- Combination of bottom up an top down strategies to produce a smoother return profile
How benefits are achieved
We combine global credit with thematic overlays to build an absolute return portfolio. Our strategy assembles diverse sources of returns within a disciplined risk management framework. Each element contributes to the return and enhances risk diversification.
- The core portfolio seeks to capture credit market premia without exposing the fund to significant cyclical risk.
- Focus on short duration (lower volatility) securities that the manager would typically hold to maturity.
- This approach keeps transaction costs low, posing less of a drag on returns.
Solutions
BMO AM Global Absolute Return
Resources
Ian Robinson
Ian joined BMO Global Asset Management (originally F&C) in 2002. Prior to this, Ian worked at WestLB Asset Management as a Fund Manager in the Global Fixed Income and Currencies team, with responsibilities for Sterling investments and global credit exposure. In 1996, Ian joined MGM Assurance as a Fixed Income Fund Manager, having started his career with Whittingdale in 1992. Ian obtained an MSc (Eng) in Integrated Management Systems in 1990, having graduated from the University of Birmingham in 1989 with a First-Class BSc (Hons) in Software Engineering. Ian holds the IIMR.
Keith Patton
Keith joined the Multi-Strategy team based in the U.K. in May 2012, and is responsible for fixed income and asset allocation strategies. Prior to joining, he was a managing director and the global head of fixed income for UBS Wealth Management in Zurich. He graduated with a BA (Hons) from South Bank University, London, and completed the Investment Management Program at the London Business School.
Disclosures
BMO Global Asset Management is a brand name that comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp. and BMO’s specialized investment management firms. The information provided herein does not constitute a solicitation of an offer to buy, or an offer to sell securities nor should the information be relied upon as investment advice. Past performance is no guarantee of future results. BMO AM Market Neutral Global Equity Fund is available for Institutional investors only. All Rights Reserved. ®”BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under licence.
Past performance is not a guide to future performance. Stock market and currency movements mean the value of investments and the income from them can go down as well as up and investors may not gel back the original amount invested.