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:


Fixed Income Insights

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Integrating Emerging Market Debt into Article 8 portfolios

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Emerging market debt: Outsized opportunities

After a year that prompted many investors to offload risk, BMO Global Asset Management assert the case for staying the course in this strategic asset class
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Making fixed income work harder

Putting sustainable euro bonds to work in institutional investment portfolios
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September 2019

Did the Fed just go Minority Report?

The Federal Reserve recently cut the Fed Funds rate in an effort to pre-empt negative outcomes
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August 2019

BBB bonds: More Fortnite or Minecraft?

The increase in BBB bonds has been popularly framed as akin to the popular video game Fortnite