Absolute Return​

Artboard 2 copy 5

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.

Play Video

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.

Ian Robinson

Co-lead Head of Credit

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

Global Head of Unconstrained Fixed Income, BMO Global Asset Management

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.

Insights

Multi-Asset
economic uncertainty
June 2022

June Monthly Market Commentary: The Economy to Face Increasing Chill, not a Hurricane

Expectations for Fed and Bank of Canada (BoC) tightening continue to firm up as monetary stimulus is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 6 to 9 months.
Multi-Asset
economic uncertainty
May 2022

May Monthly MAST Commentary: Rising commodity prices continue to support the inflation outlook while supply-chains are still exposed to disruptions

Monetary stimulus from the U.S. Federal Reserve (the “Fed”) and Bank of Canada (BoC) is getting removed at a quick pace to lean against excessive inflationary pressures. Rising rates should weigh on the growth outlook and equity valuation, but we do not expect a recession over the next 12 months.
Multi-Asset
economic uncertainty
April 2022

April Monthly MAST Commentary: Fear of War is Coming Down, but Fear Over the Fed’s Soft-landing is Rising

The conflict in Ukraine keeps on raging, but fear of an escalation has come down. However, the impact on commodity prices will continue as prices remain elevated and long-term supply remains an issue, most notably for Europe and other commodity importing countries.
Fixed Income
Sprouting plants and a lightbulb with an increasing line chart from the sprouts to the bulb

Moving the needle on sustainable fixed income

Earl Davis and Vishang Chawla discuss the positive potential impact of the fast-growing sustainable bond market.
Multi-Asset
Bubbles floating in front of a green forest background
August 2021

How long will high inflation last?

Fred Demers & Brittany Baumann share their views on temporary inflation drivers and how to position institutional portfolios for what’s ahead.
Responsible Investment
Diverse set of hands being raised together in unity
August 2021

Is diversity progressing fast enough?

Rosa van den Beemt shares the learnings and progress of her team’s engagement work on diversity and inclusion over the past year.

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.