BlackRock’s Winship de-risks Absolute Return Bond fund

Ian Winship 700x450

BlackRock fund manager Ian Winship is actively removing risk in his BlackRock Absolute Return Bond fund after performance dipped.

Winship, who has managed the £66m fund since its launch in September 2011, is making the move in order to preserve client’s capital and stem losses.

Winship says: “I am actually cutting risk at the moment because a lot of the portfolio is quite bullish and at the moment there is so much volatility that I do not think it is the right time to be long risk. We have cut back on credit, emerging markets and high yield areas.

“[The portfolio] was more optimistic and people were expecting markets to go up. It has affected performance and we lost 40 points in May.”

Attributing the poor performance to movements in the dollar, Winship’s priority is now damage control.

Winship says: “The problem was the dollar. I would like to arrest that decline [but] I don’t want to go short. I’m trying to preserve capital. ”

Over one year to 13 June 2013, the fund’s performance was 3.56 per cent while the average fund in the IMA Targeted Absolute Return sector rose 5.97 per cent. 

BlackRock Absolute Return Bond’s cumulative return to 13 June 2013

BlackRock Absolute Return Bond’s cumulative return to 13 June 2013
 
Fund -0.10% 1.06% 3.56%
-0.29% 2.84% 5.97%
0.20% -1.73% -2.27%
  26 / 64 48 / 62 40 / 61
2 4 3

Source: FE Analytics