Skip to Content Skip to Main Navigation

Absolute return process

Our multi-asset fund invests in a wide variety of assets including equities, bonds currencies, property, commodities and private equity.

Meanwhile, our bond fund invests in government, corporate and high yield bonds.  Both funds can also invest in cash and use derivatives in order to enhance returns and/or limit downside volatility. 

By utilising these investment strategies, there are a number of possible sources of return:

  • the market or ‘beta’ return, i.e. the performance of equity, bond or property markets
  • the ‘alpha’ return generated by actively managing the allocation between asset classes and markets, i.e. the benefit gained from switching between equity, bond and property markets
  • the ‘alpha’ return generated by individual securities, i.e. the performance of stocks in excess of the market
  • added value through currency allocation decisions
  • the return on cash.

It is the fund manager’s decision as to which of the potential sources of returns represent the best value at any given time and how to structure the fund as a result.

The investment objective of the Fund is to achieve a total positive return in all market conditions. However, this is not guaranteed in any way. Investors should note that while managers use derivatives to reduce downside volatility, they could also use them to increase risk. We have developed a detailed and robust risk management process to oversee and manage derivative exposure within the funds and use derivatives with the intention of reducing return volatility. However, we cannot guarantee this outcome and using derivatives may at times lead to increased price volatility. Therefore, investors should be prepared to accept the risks associated with these investments and be aware that their capital is not guaranteed.

 

Literature Order Tool

Your folder contains 0 items.

Items ordered via our literature request tool will be dispatched with 24 hours of order submission.

View/confirm order

Fund manager interviews

View the latest fund manager interviews

Compliance

This section of the site is for professional use only and must not be accessed by retail investors.


Important Compliance Information for Professional Advisers.
For professional use only - not to be relied upon by retail clients

Please read this page before proceeding, as it explains certain restrictions imposed by law on the distribution of this information and the countries in which our funds are authorised for sale. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction.

This does not constitute an offer or solicitation to sell shares in any of the funds referred to on this site, by anyone in any jurisdiction in which such offer, solicitation or distribution would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

Applications to invest in any fund referred to on this site, must only be made on the basis of the offer document relating to the specific investment (e.g. prospectus, simplified prospectus or other applicable terms and conditions).

As a result of money laundering regulations, additional documentation for identification purposes may be required when you make your investment. Details are contained in the relevant Prospectus or other constitutional document.

If you are unsure about the meaning of any information provided please consult your financial or other professional adviser.

The information contained on this site is subject to copyright with all rights reserved. It must not be reproduced, copied or redistributed in whole or in part.

You may leave the Scottish Widows Investment Partnership Limited (SWIP) website when you access certain links on this website. In so doing, you may be proceeding to the site of an organisation that is not regulated under the UK Financial Services and Markets Act 2000. SWIP has not examined any of these websites and does not assume any responsibility for the contents of such websites nor the services, products or items offered through such websites.

SWIP shall have no liability for any data transmission errors such as data loss or damage or alteration of any kind, including, but not limited to, any direct, indirect or consequential damage, arising out of the use of the services provided herein.

On accessing the SWIP website, you are aware of the following investment risks applicable to all SWIP funds:

  • Past performance is no guarantee of future performance.
  • The value of investments and the income from them may go down as well as up and are not guaranteed.
  • Your client may not get back the amount they invested.
  • Taxation rules and legislation may change without notice.
  • Rates of exchange may cause the value of investments to go up or down.
  • Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially.
  • For your protection, telephone calls are usually recorded.

This site is operated and issued by Scottish Widows Investment Partnership Limited, Company No. 794936. Registered Office in the United Kingdom at 10 Fleet Place, London, EC4M 7RH. Tel: 0131 655 8500. Scottish Widows Investment Partnership Limited is authorised and regulated by the Financial Services Authority and is entered on their register under number 193707 (www.fsa.gov.uk).

Fund tools

 

Scottish Widows Investment Partnership Limited (SWIP) is registered in England and Wales, Company No. 794936. Registered Office is at 10 Fleet Place, London EC4M 7RH. Tel: 0131 655 8500.
SWIP is authorised and regulated by the Financial Services Authority and is entered on their register under number 193707 (www.fsa.gov.uk).