Global absolute return bonds
Our flagship global absolute return bond strategy aims to generate a return of cash plus 2% pa, and is also available in cash plus 3% or 4% pa1, depending on the investor's risk requirements by investing in what we consider to be our best investment ideas across government and corporate bonds, emerging market debt, high yield, currencies and asset-backed securities.
Watch our video to hear Peter Bentley, Head of UK and Global Credit discuss why fixed income is suited to an absolute return approach.
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 in an effort to isolate the best sources of return.
Avoidance of interest rate risks: the strategy, having a neutral duration position of 'zero', seeks to avoid exposure to interest rate rises when undesirable. Instead it can focus on capturing attractive credit spreads.
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.
As of March 31, 2019. Assets under management (AUM) are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis.*
Fund and strategy profiles
Fixed income snapshot desk views
Do the ongoing political risks surrounding Brexit and US/China trade talks warrant further caution in rates and credit markets? Catch up on our monthly fixed income views.
US pension market: a statistical and qualitative review of Q1 2019 and investment outlook
After the tumultuous end to 2018, a year in which an unusually broad range of asset classes recorded negative returns, policymakers appear to be in the process of reassessing their position.
US pension market: Review of trends in US pension and financial markets in Q4 2018 and outlook
Pension Funded Status: For many, the gains realized through most of 2018 were wiped out over December with levels flat or slightly down for the year
Sovereigns and sustainability
Fixed income investors are sharpening their focus on countries' sustainability risks. We believe effective sovereign debt investment requires in-depth analysis of ESG matters, and our proprietary model aims to help us better understand ESG risks at the country level across our portfolios.
US pension market: Review of trends in US pension and financial markets in Q3 2018 and outlook
Pension fund liability hedging demand for stripped Treasury bonds continues to run at elevated levels, boosted by improving funded levels and a surge in contributions before the September 15 deadline for higher tax deduction savings.
US pension market: Review of trends in US pension and financial markets in Q2 2018 and outlook
The second quarter was dominated by political events, with the risks of a global trade war growing through the quarter. We examine these events and how they impact the outlook for pension funds.
1 The targeted rates of return are hypothetical returns, and are for illustrative purposes only. Accordingly, no assumptions or comparisons should be made based upon these returns. Hypothetical returns are subject to inherent limitations. One limitation is that the returns do not take into account the impact that market and economic risks, such as defaults, pre-payments, and reinvestment rates, may have on actual trading. In no circumstances should the targeted returns be regarded as a representation, warranty or prediction that the specific deal will reflect any particular performance or that it will achieve or is likely to achieve any particular result or that investors will be able to avoid losses, including total losses of their investment.
Please note: 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.
Insight North America LLC (INA) is a registered investment adviser under the Investment Advisers Act of 1940 and regulated by the US Securities and Exchange Commission. INA is part of “Insight” or “Insight Investment”, the corporate brand for certain asset management companies operated by Insight Investment Management Limited including, among others, Insight Investment Management (Global) Limited and Insight Investment International Limited. Insight’s assets under management are represented by the value of cash securities and other economic exposures, and are calculated on a gross notional basis. Advisory services referenced herein are available in the US only through INA.
The views herein represent the opinions of Insight and are subject to change based on subsequent developments. They are not intended as investment advice or to predict or depict the performance of any investment. The material contained herein is not intended to provide, and should not be relied on for, investment, accounting or legal tax advice. Further, this material does not constitute a recommendation to buy, sell or hold any security. No offer or solicitation for the sale of any security or financial instrument is made hereby.