Absolute Returns

"We maintain ultra-short duration and seek to achieve strong absolute returns in any environment."

- Barry Allan, President & Chief Investment Officer, Marret Asset Management Inc. | September 2017

First Asset Enhanced Short Duration Bond ETF (TSX: FSB) is designed to provide positive absolute returns and attactive monthly distributions along with very low volatility . FSB was created to meet explicit demand from advisors for a solution that would aim to outperform traditional short-term fixed income products while keeping volatility to a minimum.

How does Marret do it?

  1. Uncorrelated assets with high risk-adjusted returns:
    • Active management is the key to success of Marret's approach, not just in terms of security selection, but also through the prudent use of hedging currency, interest rate and credit risk to deliver excess returns with very low volatility.
  2. Marret uses a proven systematic risk management process for managing widening credit spreads and interest rate movements.
    • Marret is consistently active in hedging the portfolio against the risk of rising interest rates.
      Marret opportunistically hedges against the risk of widening credit spreads.
  3. Protecting portfolios from both equity and fixed income volatility.
    • The correlation between equities and long bonds has increased considerably in the past 10 years. This is concerning as many portfolios likely aren’t benefitting from fixed income allocations that buffer against equity volatility. FSB's focus on ensuring it provides low to zero correlation to equities and long bonds could make it a potentially ideal solution to help moderate portfolio volatility.

Key Reasons to Invest

Short Duration means lower volatility due to interest rate fluctuations.

Active management by a team of highly experienced fixed income portfolio managers.

Actively managed credit risk and interest rate hedging, combined with nimble market responsiveness, can translate to positive absolute returns.

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Portfolio Management

Barry Allan is the founding partner of Marret Asset Management Inc. He has over 30 years of investment experience and has successfully operated in virtually all areas of the fixed income arena. Prior to founding Marret, Barry spent 6 years with Altamira Management where he managed a wide variety of fixed income mandates and held secondary responsibilities on several equity and balanced mandates.

Mr. Sandhu has 29 years of domestic and international fixed-income experience. Prior to joining Marret, he was responsible for the global distribution of Canadian fixed-income and money market products at BMO Capital Markets and was directly responsible for advising the world's largest fixed-income asset managers on portfolio strategy, asset mix, security selection, and alpha/beta generation.

Additional Information