Baring Asset Management (Barings) has launched the Baring Dynamic Absolute Return Fund, which will use long and short strategies to target a market neutral return. It will be managed by James Ind, supported by a multi asset investment team.
The launch builds on Baring Asset Management’s 13 years’ experience of running successful multi asset strategies and complements the firm’s extensive multi asset product range. Barings was one of the first firms to offer a multi asset fund with its flagship Dynamic Asset Allocation Fund and has since broadened its portfolio with products such as the Multi Asset Fund, the Dynamic Capital Growth Fund and the Multi Asset Income Fund.
The Baring Dynamic Absolute Return Fund will use the proven expertise of Barings’ Strategic Policy Group 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.
Overall, it is expected that the Fund will hold between 10-20 diversified market strategies at any given time.
Ind says: “With a consistent process developed over 13 years, Barings has delivered exceptional multi asset performance. 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.”
Barings plans to register the Baring Dynamic Absolute Return Fund in Austria, Denmark, Finland, France, Germany, Luxembourg, Norway, Spain, Sweden, Switzerland and the UK, and will offer accumulation, income, institutional and retail share classes.