Barings' absolute return pioneer Harte exits

Colin Harte, co-manager of the £203 million Baring Global Bond Trust, has left the firm after 12 years at the asset manager, which saw him launch one of the industry's first absolute return funds.

His departure comes after his consultation period, following the proposal to merge the £77 million Absolute Return Global Bond trust, managed by Harte, with the firm’s Multi-Asset fund. The absolute return fund set the ball rolling for the asset class, launching in 2004 when the concept was relatively unheard of in the retail market.  

Hartes decision to leave the firm comes after the firm merged away his absolute return fund.  

Barings said the Global Bond Trust will continue to be run by the existing co-manager Dagmar Dvorak, and will also have the support of Harjeet Heer.

A spokesperson for Barings said: ‘It has become clear that a wider, multi asset, opportunity set offers a better environment in which to deliver strong cash plus performance for our clients. That is why we are proposing to merge the Absolute Return Global Bond Trust into our top performing Multi Asset fund.

The firm added: ‘The Absolute Return Global Bond Trust launched in 2004. It enjoyed a successful period after launch, generating absolute returns and attracting flows.

‘However, during the last 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.’

Harte joined the firm in 2000 as a senior investment manager, from Norwich Union. He has also worked at Gartmore Investment Management.

Over three years, the Global Bond trust has returned 20.18% compared with the Citigroup WGBI Total Return US dollar index, which returned 6.12%.