BMO Global Asset Management has launched an absolute return product with a targeted return of cash plus 3 per cent.
The BMO Global Absolute Return Bond fund will be managed by BMO GAM’s fixed income team in London, with Keith Patton and Ian Robinson the lead managers.
The unconstrained fund has a long bias with the ability to go short rates and credit. It not limited to any maturity, credit rating band, sector or geography.
Robinson says it will focus on shorter dated securities to reduce the cyclicality associated with longer maturity bonds. This allows us to be more confident regarding the range of outcomes around the cash plus 3 per cent target.”
BMO already offers Total Return Fixed Income and Sterling Credits Absolute Return strategies.
Mandy Mannix, head of client management for Emea at BMO, says clients have shown huge demand for absolute return strategies in the current low-yield environment.
Retail and retail super clean share classes, which require a minimum investment of €2,500, have charges 1 per cent and 0.4 per cent respectively.