Absolute Return

An Absolute Return approach to asset management represents a rejection of index driven ‘relative’ performance, in pursuit of a higher quality return that delivers ‘absolute’ performance across market cycles. The strategy takes advantage of non-traditional assets that seek to reduce the variability of portfolio returns.

The Multi-Asset Service Absolute Return Strategy makes use of hedging strategies in order to mitigate downside risk and manages directional positions such that investors retain the potential for market participation over the long-term. The strategy is available to all Multi-Asset clients irrespective of tax requirements, risk tolerance and time horizon.

Factors for Consideration

Portfolios will be invested across a range of asset classes and are likely to include exposure to higher risk, more volatile, investments and strategies as well as assets such as commodities, hedge funds and private equity which may display greater volatility and/or poorer liquidity characteristics than traditional equities and bonds.

The Absolute Return Strategy makes use of options and warrants in an attempt to reduce the variability of returns within the equity component of the portfolio. The value of investments will vary and you may realise less than the sum originally invested.