Amundi has launched a flexible absolute return fund that invests in global fixed income and currencies, combining ‘long- and short-term’ positions.
A sub-fund of its Luxembourg-domiciled range, the Amundi Funds Global Macro Bonds & Currencies is managed by its 26-strong London-based global fixed income and absolute return team.
Cédric Morisseau, fund manager, says the current market environment presents a strong argument for an absolute return approach.
The fund’s mandate allows Morisseau to invest across government and corporate debt, including emerging markets and currencies.
“A traditional long-only benchmarked approach typically provides investors with low returns and exposes them to asymmetrical downside risk,” Morisseau says.
“With our absolute return concept, bond exposure is managed to target positive returns, even in declining markets.”
He says he considers currencies a separate potential source of alpha when actively managed according to portfolio risk targets.
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