Harte uses scenario-based framework to maximise returns

Manager seeks to generate returns by exploiting movements in interest and exchange rates through long or short positions in bonds, futures and forward contracts

Barings Directional Global Bond is the brainchild of manager Colin Harte, who wanted to provide investors with uncorrelated returns through long and short fixed interest positions. The vehicle launched in November 2004 following the introduction of Ucits III, which made it possible to use derivatives to manage market exposure and treat currencies as a separate source of returns. Although Harte warned performance can be lumpy and clients should expect some periods of negative returns, the fund has done well since launch with positive three-month, one-year, three-year and five-year figure...