Investment Objective
The objective of the Fund is to seek to deliver positive total returns on a rolling twelve month basis with stable levels of volatility uncorrelated to bond and equity market conditions. In seeking to achieve its investment objective, the fund will aim to deliver a return, net of fees, in excess of the Federal Funds Effective Overnight Rate over rolling 3 year periods. For performance measurement purposes, the cash benchmark will differ for non-base currency classes. The Fund also aims to achieve its objective within an expected annualised volatility range of 2.5% to 4.5%. At times the expected volatility of the Fund may vary up to 8% depending on market conditions.
Reference Index
Cash (USD - Fed Funds Overnight)
Latest Meeting Note
Meeting 30 Dec 2022
The Strategic Absolute Return Bond fund is managed by Mark Nash, formerly the Head of Multi-Sector Fixed Income at Invesco, with support from James Novotny and Huw Davies. Although Mark is the lead portfolio manager, the fund is run in a... Read more
The Strategic Absolute Return Bond fund is managed by Mark Nash, formerly the Head of Multi-Sector Fixed Income at Invesco, with support from James Novotny and Huw Davies. Although Mark is the lead portfolio manager, the fund is run in a collaborative manner, with Mark seeking consensus from the team for portfolio changes. The fund aims to achieve an annual return of approximately 4% with a volatility range of 2.5-4.5%. The team's investment strategy involves taking a high conviction approach that combines a top-down and bottom-up approach to macro investing. They use top-down fundamental research to understand the macroeconomic environment and provide a framework for their core strategy. However, the team believe that a purely fundamental approach to investing is not sufficient to outperform in today's financial markets. This interplay between the team's top-down and bottom-up macro analysis determines the portfolio strategy. The team’s initial analysis seeks to identify the economic and financial conditions that are impacting markets. These are then used to construct a portfolio that has the appropriate characteristics in terms of duration, yield curve, credit, country, and currency. During portfolio construction the team use market price action to influence how much risk they want to implement and when. The process looks to deliver diversified returns across the fixed income and currency spectrum and not relying on one specific areas, whilst being run in a highly liquid manner and with low exposure to credit markets.
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.2 | 0.3 | 1.0 | 0.6 | 0.6 | 0.2 | 0.1 | 0.5 | 0.7 | 1.0 | 0.7 | 0.9 | 0.3 | |
2022 | 0.6 | 0.6 | 0.8 | 0.1 | 0.9 | 0.6 | 0.2 | 1.0 | 0.1 | 0.9 | 0.9 | 0.5 | 0.8 |