The product uses a flexible absolute return approach for fixed income assets, with the objective of outperforming the Euro Overnight Index Average (EONIA) daily compounded over an investment horizon of three years. This approach considers that the prevailing low interest rate and low inflation environment could change, due to the abating Eurozone crisis and central bank policies.
“The current market environment presents a strong argument for an absolute approach. A traditional ‘long-only’ benchmarked approach typically provides investors with low returns and exposes them to asymmetrical downside risk. With our absolute return concept, bond exposure is managed to target positive returns, even in declining markets,” Morisseau said.
The portfolio invests across the global fixed income universe, including government bonds, corporate credit, emerging market debt, and currencies.
“We see currency as a separate potential source of alpha, actively managed according to portfolio risk targets in order to help achieve the performance objective,” Morisseau added.
The fund is domiciled in Luxembourg and available to UK investors with both euro and dollar share classes with annual management fees between 0.4-1.2%.
The fund will have both euro and dollar share classes with annual management fees ranging from 0.4 per cent to 1.2 per cent. It excludes an annual administration fee for these share classes which is between 0.1-0.3%.
