BNP Paribas IP to discuss absolute return for fixed income
Alex Johnson, head of Absolute Return at Fischer Francis Trees & Watts (FFTW) – BNP Paribas Investment Partners, will join InvestmentEurope‘s Fund Selector Absolute Return Focus Italy 2015 to discuss how to apply an absolute return strategy to fixed income portfolios.
“Given the current market outlook, investors need to focus on diversification and opportunities in multiple environments. Absolute Return Fixed Income is a timely portfolio addition as a pure alpha generating strategy,” the manager will say.
FFTW manages Absolute Return using a risk-budgeted approach to as diverse a set of fixed income opportunities as possible, ensuring that no one theme dominates expected return, and uncorrelated with the direction of fixed income markets.
“This combination has worked, and it is offered in a Ucits fund format with a volatility target of 350bps, consistent with expected returns over cash of around 3% pa over the cycle, and has been augmented with a second Ucits fund targeting 700bps of volatility, consistent with expected returns over cash of around 7%. For discretionary mandates, the approach is modular, allowing differing volatility targets, asset classes, and customization to address client concerns and constraints,” the company says.
Johnson is responsible for the management, growth and development of global absolute return strategies, and he is the portfolio manager for multi-strategy absolute return portfolios.
Prior to his current role, he served as co-head of Global Fixed Income for FFTW having previously been head of Portfolio Management. Prior to this, he was employed as a Senior Portfolio Manager at Fortis Investment Management, which was integrated into FFTW in 2010. Alex is based in New York.