Standard Life Investments

Absolute return investing

Traditional investment portfolios seek returns by investing in asset classes such as equities, fixed income or real estate, or combinations of these. While these asset classes have generally produced positive returns over the long term, short-term performance can be volatile, giving investors a worrisome and uncertain investment journey.

By contrast, absolute return portfolios seek to make positive returns irrespective of the market conditions. This helps to smooth investment returns, while also improving the portfolio’s return potential.

To make this possible, absolute return portfolios typically invest across a wide range of asset classes and geographies in order to spread portfolio risk.

Absolute return portfolios can also use advanced investment strategies. An example would be a relative value strategy, which can make money irrespective of whether markets are rising or falling.

Standard Life Investments offers a number of absolute return portfolios, all of which follow our multi-asset investment process and philosophy. Each of these portfolios has a different investment universe and distinct performance objective.