The "risk-on sentiment" seen in equity markets in 2019 led to a collapse in the performance of BMO Global Asset Management's Global Equity Market Neutral fund, which saw calendar year losses of losses of 30.1%, the firm has said.
The systematic long/short fund performed poorly compared to peers over 2019, with its IA Targeted Absolute Return sector averaging a 4.4% positive return, according to FE Fundinfo. The second and third worst performers within the sector - Merian Global Equity Absolute Return and Quilter Investors Global Equity Absolute Return - lost 13.2% and 13% respectively. The absolute return sector comeback? In two of the three calendar years prior to 2019, the BMO fund delivered positive returns, with gains of 9.5% and 2.2% in 2017 and 2016 respectively, and a loss of 2% in 2018. Its 2019 per...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
