Why consider absolute returns from fixed income?

ABSOLUTE RETURNS

Chris Fellingham, chief investment officer at Ignis Asset Management, outlines why current conditions in fixed income markets mean it is timely to consider absolute return products in this space.

Markets no longer reward a bias to a particular investment style. Investors therefore have little patience with managers dogmatically holding a long-term view in the hope that the market will eventually come round to their way of thinking. Styles and processes instead need to be flexible, with portfolios adjusted in a timely manner to suit prevailing market conditions. In short, managers need to invest pragmatically, with a focus on the outcome their mandate requires them to deliver. Fewer constraints Well-managed absolute return funds benefit from having fewer constraints than long...