What are liquid absolute return strategies?

Absolute return describes an investment approach which seeks to provide a positive return in absolute terms, as opposed to the more relative strategy of attempting to beat a specific benchmark. Absolute return strategies are considered to be liquid, when they are created in a unitised form that can be easily bought and sold by investors.

An ongoing evolution

The absolute return sector is not new but as returns from more traditional defensive asset classes have decreased on the back of quantitative easing and low interest rates, its importance has grown. And, with the advent of UCITS IV regulations, the universe of instruments these funds can use has expanded significantly.

Our approach to absolute return

The AXA IM Chorus team brings together high-quality professionals from both the buy and sell side as well as research and technology. The team focuses this collective knowledge on carefully selecting and combining different sources of return in a bid to provide clients with a differentiated proposition.

These ‘premia engines’ as we call them are built in terms of risk rather than their asset class profile in order to create a diversified portfolio with a low correlation to traditional assets. 

“While liquid absolute return strategies are not new, we see demand for them increasing and believe that our approach, powered by a team of some of the brightest and best from the buy and sell side, as well as research and technology, will offer clients an exciting and differentiated proposition.”
AXA IM Chorus, Managing Director, Pierre-Emmanuel Juillard