Sources of diversification and performances that are decorrelated from market trends, thanks to an approach that complements traditional strategies
The steep volatility that we have seen for almost 10 years now reflects a large number of uncertainties on the health of the international economy, market liquidity, the limits of ultra-accommodative monetary policies, and a worsened geopolitical environment.
Historically low and even negative interest rates on money-market and bond assets have created a new market paradigm, modifying considerably the standards that we are familiar with and making it more difficult to generate returns.
Absolute return strategies are one way to cope with this economic and financial environment. They target positive returns that are uncorrelated from traditional asset classes, with volatility that is generally lower. They are also a good choice in a diversified portfolio, to go along with traditional strategies.
A range of funds featuring separate performance drivers that offer a possible answer to the new issues facing investors.