Guardian Group of Funds Ltd. (GGOF) has launched GGOF Global Absolute Return Fund, a new fund that will focus on preservation of capital, while investing in attractively valued equity securities with no geographic or capitalization restrictions.

GGOF says the fund is particularly well-suited for conservative investors who want global equity exposure. The fund will employ a range of investment strategies that strive to deliver predictable, consistent and positive investment returns with a primary focus on preservation of capital and a secondary focus on growth of capital.

“While stock markets have enjoyed a substantial bull market for the last four years, this has led to stretched valuations and a willingness to pursue returns from more volatile and less transparent markets, while ignoring the risks associated with such investments. This makes it a particularly appropriate time for GGOF to launch a fund focused on delivering absolute positive returns,” says Gavin Graham, chief investment officer, GGOF.

Absolute return investing is a strategy that employs the basic tenets of value investing and is characterised by significantly reduced volatility and relatively stable and predictable returns. The fund’s emphasis on capital preservation will be achieved through buying securities with a significant discount to their intrinsic value. In addition, GGOF will leverage its experience in structuring innovative products that offer less volatile means of accessing traditionally volatile asset classes.

“Returns from absolute return investing have historically been non-correlated with returns from conventional asset classes, which means that absolute return products like the GGOF Global Absolute Return Fund can be useful in achieving portfolio diversification,” says Graham.

The fund will hold a relatively concentrated portfolio of approximately 40 holdings, primarily equities, with no limitation to investing in other asset classes. The portfolio advisor will invest globally without geographic restriction, although developed markets will be favoured.

The fund will be managed by Matthew Haynes, director, global equities at Lazard Asset Management (Canada) Ltd. Haynes is a seasoned value investor who has consistently delivered exceptional results using an absolute return approach. Lazard currently manages or co-manages seven GGOF funds. Prior to joining Lazard, Haynes was co-manager of the Mutual Beacon Fund from 2001-04.

http://www.newswire.ca/en/releases/archive/August2006/16/c6202.html