Fulcrum Fixed Income Absolute Return Fund (FIAR)
Diversified returns from a broad range of fixed income markets through an economic cycle.
investment objectives
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Introduction
The Fixed Income Absolute Return Fund has been designed to help clients generate medium to long-term (3-5 years) returns that through exposure to global government bond markets, investment grade and high yield assets and currencies. Investments are strictly limited to highly liquid instruments so that clients can access their capital when they need it. Beyond investment, risk management is central to our approach. Specifically, we seek to limit volatility and performance drawdowns to realistic and acceptable levels so that clients can maintain an appropriately long investment horizon and avoid common behavioural mistakes that stem from unexpected volatility.
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Key Differentiators
- Quality and Stability of Team: we are an experienced and stable team that has worked together for almost two decades
- Repeatable Process: we follow a robust and dynamic investment process that is not reliant on luck
- Performance Focus: we have delivered strong risk-adjusted returns with a low sensitivity to broad fixed income investment markets
- Portfolio Breadth: our approach is highly diversified across fixed income strategies, time horizons, and geographies
- Effective Risk Management: our risk-management process seeks to deliver return asymmetry
- Culture of Excellence: we are at the knowledge frontier in all areas that impact our investment strategies
Investment Philosophy
- Preventing Losses: We place the highest priority on preventing losses, with a permanent insurance overlay to help protect against extreme losses
- Consistency: We follow a disciplined investment process which is highly diversified across strategies, time horizons and geographies
- Research-driven Approach: Our investment process is guided by economic theory and backed by empirical research
- Motivated by Long-term Success: This determines the way we invest for our clients and in the growth of our business
Investment Process
Three Building Blocks
Consistency
Breadth
Academic Rigour
Multidisciplinary
Investment Universe
Interest Rates
- Duration
- Cross Country
- Inflation
- Curve
- Emerging Markets
- Local & Hard Currency Debt
Credit
- Investment Grade
- High Yield
- CDS Index Product
- EM Sovereign CDS
Currencies
- Developed Markets
- Emerging Markets
Diversifying Strategies
- Fixed Income & FX Carry
- Risk Premia
- Market Neutral
- Developed Markets
- Emerging Markets
Responsible Investing
We strive to integrate responsible investing wherever it is possible to make a meaningful difference. With regards to this fund, we identify and aggregate material ESG factors for each instrument in order to set strict risk limits based on a calculated overall ESG score.
Collaborating
Leveraging Fulcrum's Capabilities
Our investment approach is rooted in academic rigour and analytical tenacity. To achieve our aims, we leverage the full suite of capabilities available at the firm.
Macro &
Multi-Asset
Risk Premia
Alternative
Solutions
Thematic
Equities
Climate-Aligned
Investing
The Team
Fulcrum’s Senior Investment Team is responsible for setting the investment strategy and they are supported by a team of economists, strategists and analysts who regularly assess the economic environment, market valuations, behavioural biases and the political landscape.
Contact Us
If you have any questions, do contact us and we would be happy to have a chat.
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