Columbia Management has launched two absolute-return funds, the Columbia Absolute Return Multi-Strategy Fund and the Columbia Absolute Return Enhanced Multi-Strategy Fund. Both funds use multiple strategies to reduce portfolio volatility.
“We believe these funds represent a different approach to absolute return investing,” said Todd White, head of alternatives and absolute return investments at Columbia. “While many absolute-return funds focus on a single strategy, we carefully balance numerous independent strategies.”
The multi-strategy fund targets long-term returns similar to historical returns of investment-grade bonds but with lower volatility and low correlation to the Barclays Capital U.S. Aggregate Bond Index. The enhanced multi-strategy fund targets long-term returns of equities but with lower volatility and low correlation to the S&P 500 Index.