Absolute Returns
Mergence's Absolute Return Fund is a diversified portfolio that focuses on preserving capital and beating inflation. The Fund's aim is to achieve a real return above CPI over a three-year rolling period. The fund has the following salient features:
- It targets real returns (inflation beating);
- Achieving those returns at a lower level of volatility than the market;
- Aims to preserve capital over a 12-month rolling period;
- Active management of asset class exposures;
- Active security selection aimed at generating additional returns;
- Effective employment of derivatives for hedging purposes.
The portfolio is managed to offer downside protection in the short-term while providing upside participation in the long-term.
