Barings to merge away Absolute Return Global Bond trust

The group is merging the fund into Andrew Cole’s £91.2m Multi Asset fund, saying the absolute return fund struggled “to generate consistent and positive absolute returns”.

Barings also said it was in consultation with Mr Harte as part of the merger plans.

The group has also named Dagmar Dvorak as sole manager of the £196.8m Global Bond trust, which was previously co-managed by Mr Harte, while the consultation period is underway.

A spokesman for Barings declined to comment further on the consultation.

“The Absolute Return Global Bond fund launched in 2004,” the group said in a statement. “It enjoyed a successful period after launch, generating absolute returns and attracting flows.

“However, during the past few years, the behaviour of bond and currency markets has made it difficult for us, along with many competitors, to generate consistent and positive absolute returns using a long/short strategy.

“We think the economic environment is such that this is likely to remain the case for the foreseeable future.”

The Baring Absolute Return Global Bond Trust has delivered a 0.7 per cent loss over three years to December 30. However, the fund’s five-year return was a 7.9 per cent gain, according to Morningstar.