As a natural complement to our long-established suite of credit offerings, the Absolute Return Income strategy leverages Oaktree’s deep credit-underwriting expertise and applies it across the full fixed income spectrum, with an aim to produce positive returns and incremental performance relative to cash. The strategy aims to be a liquid, low-duration fixed income portfolio in which risk premia from global fixed interest serves as a source of consistent and repeatable returns. Our Absolute Return Income strategy is managed by Brad Boyd.
The strategy invests in both opportunistic and defensive securities to construct optimized portfolios, with the goal to arrive at a risk/reward equilibrium consistent with investor objectives and the market environment. The defensive and highly liquid portion of the Absolute Return Income portfolio serves as a ballast during periods of market turbulence, whereas allocations to the opportunistic portion of the market serve to propel long-term risk-adjusted returns. Weightings to the defensive and opportunistic portions of the portfolio are dynamic – we seek to make changes based on bottom-up valuations, our view on relative value, and our insight into where we are in a given credit cycle. Positioning the portfolio to generate a reasonable return while prioritizing the protection of downside is key to our investment approach.
“Before we consider the direction of markets or the value of credit opportunities presented, our first responsibility is to mitigate risk and to protect an investor’s principal against the potential for loss,” says Mr. Boyd. “Risk management and consistency are paramount.”
Learn more about Oaktree's UCITS Funds.