We have updated our Privacy and Cookie Policy. By clicking I Agree below, you acknowledge that you accept ourPrivacy and Cookie PolicyandTerms of Use.

PLEASE TELL US A LITTLE ABOUT YOURSELF SO THAT WE CAN DISPLAY THE MOSTAPPROPRIATE CONTENT TO YOU:

I am a discretionary fund manager / multimanager

This site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about cookies used on Trustnet and how you can manage them, see ourPrivacy and Cookie Policy.

By clicking I Agree below, you acknowledge that you accept our Privacy Policy andTermsof Use.

I am a discretionary fund manager / multimanager

What would you like us to do with the funds youve selected

Which region are you looking to add equity exposure to?

Aberdeen Standard Investments Luxembourg S.A.

Comgest Asset Management International Limited

Fidelity International (FIL Inv Mgt(Luxembourg)SA)

Fidelity International (FIL Invt Svcs UK Ltd)

Goldman Sachs Asset Management Fund Services Ltd

Smith & Williamson Fund Administration Limited

Stonehage Fleming Investment Management Limited

Absolute return bond funds aim to achieve positive returns for clients in all market conditions regardless of whether interest rates are rising or falling. They can do this by investing in a combination of money market securities, bonds and bond market derivatives.

The new UCITS III regulations have made it possible to offer these groundbreaking funds to private clients and a short explanation of the use of derivatives is provided further on in this guide.

Effectively, the new UCITS III rules opened up a fresh area of opportunity. Previously, the use of derivatives had been limited to efficient portfolio management, such as currency hedging. The UCITS III regulations differentiate between older-type funds that are limited to using less sophisticated derivative strategies, and those able to use more sophisticated ones (ie more flexible derivative strategies). Absolute return bond funds look to make good use of these new investment powers.

Data provided by FE. Care has been taken to ensure that the information is correct, but FE neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Five reasons to keep hold of your defensive funds

You are currently using an old browser which will not be supported by Trustnet after 31/07/2016. To ensure you benefit from all features on the site, please update your browser.Close

Please read ourTerms of Use / DisclaimerandPrivacy and Cookie Policy.

Data supplied in conjunction with Thomson Financial Limited, London Stock Exchange Plc, and m