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Absolute return managers can profit from divergence

As economic trajectories and central bank policies across the globe diverge, dislocations occur. You need a flexible manager to profit from this, says GAM’s Mark Pearce.

Mark Pearce

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“Over the longer term, increasingly divergent economic trajectories will be the key drivers [of returns]”, says Pearce.

This comes with increasingly divergent central bank policies, which creates opportunities. Unlike traditional bond funds, nimble absolute return strategies can thrive in such an environment, according to Pearce.

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