Barings expands absolute return fund range
Baring Asset Management (Barings) has launched the Baring Dynamic Absolute Return Fund, a high conviction long/short strategy that seeks to generate a positive absolute return over a three-year period.
The fund will be managed by James Ind alongside Barings’ multi-asset team. It will use long and short strategies in order to target a market neutral return.
The Baring Dynamic Absolute Return Fund will aim to identify both absolute value and relative value opportunities.
“Positions will be subject to risk budgeting constraints, with volatility expected to average around 7%. The portfolio will use drawdown controls to limit downside over any given month,” Barings explained.
The fund will further hold between 10 and 20 diversified market strategies at any given time, the firm said.
James Ind, investment manager of the Baring Dynamic Absolute Return Fund, said the demand for absolute return products continues to grow among all client segments.
“It is a natural step for Barings to develop a more market-neutral offering given its track record of success in asset allocation.
“Investment returns are under significant pressure, with a third of the sovereign bond universe offering negative yields. The need for alternative funds to diversify traditional growth assets is driving significant fund search activity.
“Using top-down investment models, the Baring Dynamic Absolute Return Fund will be agnostic as to overall market direction. Use of long and short strategies as well as derivatives will allow the fund to adapt to different market regimes,” Ind commented.
Barings has plans to register the fund in Austria, Denmark, Finland, France, Germany, Luxembourg, Norway, Spain, Sweden, Switzerland and the UK.