SWIP Absolute Return
Find out more about Absolute Return at SWIP
The SWIP Intelligence Centre is a free, video-based educational tool that provides information on a range of investment topics. The absolute return investing module discusses what absolute return funds are, what the benefits and risks of this approach are and the key differences between an absolute return strategy and a traditional long only strategy. There are individual chapters dedicated to explaining how derivatives are used in this investment approach as well as an overview of the main derivative instruments from futures through to swaps. An overview of the most commonly used absolute return benchmarks and a detailed look at Value at Risk provide a sound understanding of how this strategy works. If you want to gain a better understanding of absolute return investing, this module breaks down much of the jargon associated with this strategy in a clear and comprehensive manner. The video based presentation is CPD accredited and takes less than 20 minutes to complete. www.intelligencecentre.com/ifa
Reasons to invest in SWIP Absolute Return Bond Fund
- Potential for 'cash plus' returns – The Fund has a target return of 3-month LIBOR plus 3% p.a.* over the long-term, making it an attractive proposition for your clients.
- Aims for positive returns regardless of market conditions – The Fund’s objective is to achieve a positive long-term capital return, regardless of market conditions by investing in a portfolio of fixed interest securities, money market funds, cash, deposits, index-linked securities and derivative contracts.
- Flexibility to adapt to market movements – Having the flexibility to use derivatives allows our managers the freedom to express views on the market and profit from both rising and falling markets.
- Improved diversification within a broadly-based portfolio – Investing in different instruments to other bond strategies and having a number of sources of return, means investors can benefit from improved diversification. The Fund can also help to reduce overall risk when held as part of a broadly based investment portfolio.
- High conviction portfolio – The Fund invests in the fixed income team’s best investment ideas within a strict risk framework but without the constraints of a benchmark index.
- Expertise of SWIP’s Global Bond and Economics Team – With 27 investment specialists in our Bond and Economics team, SWIP have one of the largest, most experienced fixed income teams in the UK. We were among the first to launch a range of absolute return funds and have been managing absolute return portfolios for over 10 years.
- A repeatable, research-driven process – Our investment philosophy emphasises disciplined active management of high quality, fixed income instruments within a controlled framework. Our decisions are driven primarily by top-down research and an in-depth understanding of long-term global macro-economic drivers. Within this framework we use bottom-up analysis of government and corporate debt markets to add value to the portfolio. Using many different sources of added value, we believe helps us to achieve the target return.
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* Gross of fees and tax. Returns are not guaranteed.
