Global Absolute Return Bond Fund
Our Global Absolute Return Bond Fund seeks to offer investors globally diversified exposure across global government bonds, global corporate bonds, high yield, loans, emerging market debt, asset-backed securities and currency markets through a broad range of fixed income securities and has the potential to provide investors with a positive return throughout the economic cycle.
The Fund aims to provide a positive absolute return in all market conditions over a rolling 12-month period, and 3% per annum in excess of the Bloomberg AusBond Bank Bill Index (before fees and expenses) over rolling three-year periods.1
In the video below, Andrew Wickham, Head of Fixed Income (UK), and Peter Bentley, Deputy Head of Fixed Income and Head of Global Credit, explain how their long-running approach to absolute return bonds differ from more traditional long-only strategies.
Aims to deliver in all market conditions: the strategy can express both positive and negative views, with the appropriate use of derivatives, to seek to add value regardless of overall market direction.
Far more flexibility than a long-only strategy: portfolio managers can invest across the broad spectrum of fixed income securities to isolate the best sources of return. Avoidance of interest rate risks: with a neutral duration position of 'zero', the strategy can seek to avoid exposure to interest rate rises or adopt long or short duration exposure to aim to benefit from rising or falling interest rates across global bond markets.
Low correlation with other major asset classes: absolute return strategies are useful diversifiers against an investor's traditional benchmarked strategies.
Managed by an experienced team: the strategy is managed by a highly experienced team, with a transparent investment process and proven track record.
Fund and strategy profiles
Fund and strategy updates
Monthly update: Insight Global Absolute Return Bond strategy
The strategy generated a negative return in September. Yields steadily rose and risk markets recovered from the weakness in August. However, at the end of the month, the Italian budget announcement caused Italian government bonds to sell off rapidly and halt the rally of risk assets.
Quarterly update: Insight Global Absolute Return Bond strategy
Over the quarter the strategy generated a positive return, but underperformed its benchmark. In terms of headline attribution, country allocation and inflation contributed to performance while duration, yield curve positioning, emerging market debt and currency detracted.
Latest webinars and videos
Insight Global Absolute Return Bond Fund secures recommended rating from Lonsec
SYDNEY: 12 October, 2017 – Insight Investment, a leading global investment manager, has received a ‘Recommended’ rating for one of its flagship Australian funds – the Insight Global Absolute Return Bond Fund – from Lonsec Research.
Insight Investment fund added to HUB24 platform
SYDNEY: 24 May, 2017 – Insight Investment, a leading global investment manager, today announced that the Insight Global Absolute Return Bond Fund has been added as an investment option to the HUB24 platform.
Insight fund secures recommended rating from Zenith
SYDNEY: 14 March, 2017 – Insight Investment, a leading global investment manager, has received a ‘Recommended’ rating for one of its funds, the Insight Global Absolute Return Bond Fund, from research house Zenith Investment Partners.
Product disclosure statement
Equity and credit markets show strong signs of exuberance, and the clock is ticking on a potential reversal of recent trends. We believe that investors should be considering risk re-allocation strategies.
Thoughts for 2018
After years of sustained global growth and buoyant asset prices, investors face a number of significant potential turning points in 2018. We share our thoughts on some of the major investment themes and the opportunities and challenges they present.
Managing Interest Rate Risk With An Absolute Return Approach
With key global central banks turning toward monetary policy normalisation, the prospect of rising interest rates has led investors to question the merits of fixed income exposure.
Team statistics as at 30 June 2018. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients. Fund size as at 30 September 2018.
The value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance.
Derivatives may be used to generate returns as well as to reduce costs and/or the overall risk of the portfolio. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
A credit default swap (CDS) provides a measure of protection against defaults of debt issuers but there is no assurance their use will be effective or will have the desired result.
Investments in bonds are affected by interest rates and inflation trends which may affect the value of the portfolio.
The investment manager may invest in instruments which can be difficult to sell when markets are stressed.
Where leverage is used through the use of swaps and other derivative instruments, this can increase the overall volatility. Any event that adversely affects the value of an investment would be magnified if leverage is employed by the portfolio and losses would be greater than if leverage were not employed.
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