Dynamic Allocation. Absolute Flexibility.
Uncertainty is expected to remain heightened. Flexible fixed income strategies may offer a counterbalance.
2026: Anything but simple
While we continue to weigh the impact of evolving tariffs on the global economy, market volatility is likely to remain heightened. The recent de-escalation in the trade war between China and the US has provided some relief; however, even the lower levels of tariffs look unlikely to alleviate slowing US growth this year. Moreover, tariffs have added complications to the policy environment by boosting US inflation, leaving the US Federal Reserve between a rock and a hard place. Add geopolitical tensions to the picture and 2026 is looking to be a continuation of last year.
Source: BNP Paribas Asset Management as of January 2026. Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice. No information given or any term used herein shall be interpreted to provide such a guarantee or protection. Past performance and any economic and market trends are not indicative of future performance.
Global Absolute Return Bond strategy – the solution
Flexible & dynamic approach
Flexible & dynamic approach
The strategy dynamically allocates across different regions, sectors, securities, tenors, yield curves, and currencies in accordance with the investment team’s views. This could help to improve diversification, limit drawdowns and deliver positive returns regardless of market conditions.
Enhanced risk-return profile
Enhanced risk-return profile
With its flexible approach and ability to invest in relative value positions, the strategy aims to deliver low correlations to traditional fixed income segments, such as global high yield. The strategy may, therefore, help to improve the overall risk-return profile of a diversified portfolio.
Focus on capital preservation
Focus on capital preservation
To minimise capital loss, the team places considerable emphasis on portfolio construction and works closely with their dedicated front office risk analyst. The result is a globally diversified strategy with multiple return streams that seeks to perform well across the team’s base case as well as a range of other market scenarios.
Keen to learn more?
What is absolute return bond investing?
Awards
These awards validate our fixed income expertise and our commitment to fixed income excellence.
• 2024 Benchmark Fund of the Year Awards for Global Absolute Return Category1
• 2026 Best of the Best Awards for Global Absolute Return (3 years)2
For details, including judging methodology, please refer to the official award website. BNP Paribas Asset Management did not pay an entry fee for the Benchmark award. Trademark, copyright, and other intellectual property rights are and remain the property of their respective owners.
Meet the team
Our global absolute return bond strategy is actively managed by James McAlevey, Head of Global Aggregate and Absolute Return. Based in London, James has more than 26 years’ investment experience across multi-strategy fixed income and interest rates portfolios.3
James and the Absolute Return team are part of BNP Paribas’ Global Fixed Income investment group.4 They collaborate with the investment group’s various teams to generate the best ideas across an unconstrained multi-sector fixed income universe. They also benefit from access to firmwide resources including our dedicated Sustainability Centre, Quantitative Research Group and Macro Research team.
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James McAlevey
Head of Global Aggregate and Absolute Return
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Jayesh Mistry
Senior Portfolio Manager
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Gaetan Fenerol
Portfolio Manager
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Jamie Irvine
Portfolio Manager
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Heyuan Qian
Junior Portfolio Manager
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Vicky Browne
Investment Specialist, Global Aggregate & Absolute Return
Related insights
Access the team’s latest views and ideas
[1] “2024 Benchmark Fund of the Year Awards”, reflects the performance of BNP Paribas Global Absolute Return Bond Classic EUR Cap from 1 January 2024 to 31 December 2024.
[2] “Best of the Best Awards 2026 for Global Absolute Return (3 years)” reflects the performance of BNP Paribas Absolute Return Bond as of 30 September 2025.
[3,4] BNP Paribas Asset Management, as of 31 January 2026.
Important information
This material is issued by BNP PARIBAS ASSET MANAGEMENT Malaysia Sdn Bhd, an investment management company holding a Capital Markets Services Licence under the Capital Markets and Services Act 2007 of Malaysia, having its principal place of business at Vista Tower, Level 48D, The Intermark 348 Jalan Tun Razak 50400 Kuala Lumpur, Malaysia. This material has not been reviewed by the Securities Commission Malaysia.
This material is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio.
Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, performance may at times be better or worse than the performance of relatable strategies that do not apply such standards.