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: Equites set to survive rising interest rates

It’s been a tough week for equities as bond yields rose sharply.
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January 2022

COP26 and carbon markets: what are the implications for investors?

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January 2022

ESG knowledge shared: January 2022

Keep up to date with responsible investing through our monthly roundup of highlights – articles we’re reading, podcasts we’re enjoying, useful videos and more.
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January 2022

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As we ponder what to do with our investments in 2022, there are lots to worry about. Omicron is sweeping the world.
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December 2021

Weekly review: Markets try to look through worries on Covid and inflation

As 2022 begins, markets are trying to make sense of worries about the new strain of the virus and inflation.
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December 2021

Closing Bell: 2021 – the year we learned to live with Covid

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