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Targeting precise performance with a genuine multi style alternative.

BMO AM Global Absolute Return Bond

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.

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Learn more about this sophisticated solution for investors looking for greater certainty of outcome in today's low-yield environment.



BENEFITS TO INVESTORS

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

Key features

 

FOCUS ON WHERE
ANOMALIES EXIST

 

CONSISTENT ABSOLUTE
RETURNS

 

DISCIPLINED RISK
MANAGEMENT

 

LIQUIDITY

 

VARIED SOURCES
OF VALUE

 

DERIVATIVES TO INCREASE DIVERSIFICATION
AND RISK MANAGEMENT

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.

 

Core Credit

  • 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.

Thematic Overlays

  • Thematic strategies are included in order to generate additional return and to increase diversification.
  • Each strategy is managed independently by a specialist team to facilitate lower correlation.
  • The currency and rates portfolios use derivatives to express investment views for greater flexibility.
  • The sock/sector strategy focuses on shorter term ideas and positions.

Active Portfolio Construction

  • The Asset Allocation committee (led by Keith or Ian) takes responsibility for:
    • Setting the risk of the overall portfolio
    • ensuring the strategy is appropriately positioned across the key return drivers
  • The team take a medium term cyclical approach with a key focus on minimising the potential for losses.
Our three part methodOur three part method

SPECIALIST TEAM

Our Absolute Return Fixed lncome team consists of 19 investment professionals with an average of 17 years of investment experience and 7-year tenure at BMO Global Asset Management.

Keith and lan are both responsible for Asset Allocation and Risk. Ian is also in charge of credit.

Keith Patton

KEITH PATTON

Co-lead
Head Multi-Strategy, Fixed lncome

 

Biography
Ian Robinson, Head of Credit (EMEA)

IAN ROBINSON

Co-lead
Head of Credit

 

Biography

Years' experience in the team

12

 

GLOBAL RATES AND MONEY MARKETS

13

 

HIGH YIELD

14

 

INVESTMENT GRADE CREDIT

19

 

EMERGING MARKET DEBT

20

 

MULTI STRATEGY

21

 

DEALING

Quotation

 

"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. We target diverse sources, managed by specialist teams and brought together in a clearly defined risk management framework, to deliver a narrow range of risk/reward outcomes."


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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.