Global absolute return bond
Target steady returns with access to a wide range of bond opportunities.
The opportunity
Against a backdrop of elevated volatility and uncertainty, traditional fixed income approaches, such as those tethered to a specific benchmark or segment, may prove less effective. Absolute return strategies offer a sound alternative, we think. Unconstrained by a benchmark, they can invest across the bond markets with the best risk-reward ratios, helping to deliver smoother returns over a market cycle.
Strategy highlights
Broad fixed income universe
Drawing on their own expertise and the collective knowledge and ideas of our global fixed income platform, the investment team seeks to invest in the most compelling opportunities across the multi-sector fixed income universe including rates, developed market credit, structured credit, emerging markets, and foreign currency.
Portfolio
diversification
Collaborating with our sector specialists, the team leverages the breadth and depth of global fixed income markets to build a portfolio formed of multiple return streams. This can help to enhance diversification and deliver stable absolute positive returns that are less dependent on the overall direction of markets.
Capital preservation¹
The team’s process considers macroeconomic conditions, the relative value of individual securities, and overall risk. The result is a strong focus on capital preservation and generally low correlation to other fixed income assets, which can help the strategy to deliver smoother returns over a market cycle and help to improve the strategy’s overall risk-return profile.
Team and expertise
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.² He is supported by four portfolio managers: Jayesh Mistry, Gaetan Fenerol, Jamie Irvine, and Heyuan Qian.
James and the Absolute Return team are part of BNP Paribas Asset Management’s Global Fixed Income investment group, which helps to ensure a global approach that considers all investment possibilities. To this end, they frequently collaborate with our other fixed income teams including, but not limited to, High Yield and Investment Grade Corporates, Emerging Markets, Structured Securities, Global Rates, and Money Markets. They also benefit from access to our dedicated Sustainability Centre, Quantitative Research Group and Macro Research team.
Investment Risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment.
The strategy may be exposed to specific risks, including Collateral Management Risk, Counterparty Risk, Credit Risk, Derivatives Risk, Emerging Markets Risk, Extra-Financial Criteria Investment Risk, High Yield Bond Risk, Securitised Products Risk, and specific Risks related to Investment in Mainland China including Bond Connect.
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
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[1] BNP Paribas Asset Management doesn’t provide any formal capital guarantee or protection of the strategy. No information given or any term used herein shall be interpreted to provide such a guarantee or protection.
[2] BNP Paribas Asset Management, as of 30 September 2025.
Important information
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
This material is issued and has been prepared by the investment management company. This advertisement has not been reviewed by the Monetary Authority of Singapore. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.
This document is produced for information purposes 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.
This document does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Investors considering subscribing for the fund should read carefully the most recent prospectus, offering document or other information material and consult the fund’s most recent financial reports before investing, as available from the investment management company or its authorized distributors. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by the investment management company or its authorized distributors or their affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by, amongst other things, investment strategies or objectives of the fund and material market and economic conditions, including interest rates, market terms and general market conditions. Past performance of the fund or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund or the manager. The value of shares in the fund, and the income accruing to the shares (if any), may fall as well as rise and investors may not get back the full amount invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements.
Views and opinions included in this document constitute the judgment of the investment management company and its affiliates at the time specified and may be subject to change without notice.
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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.