BBVA Asset Management, part of the Spanish bank BBVA, has launched three new absolute return funds, two investing in ETFs and one in actively managed funds, reports Citywire.

The three global, multi-asset funds can invest in equity and fixed income, currency, interest rates and commodities, according to the news service. BBVA’s quantitative dynamic asset allocation model will reportedly be used to implement the funds’ strategies, as well as the firm’s risk control and stop loss procedures. It is also reported that the funds will not use any leverage.

The BBVA Evolución V.5 and the BBVA Evolución V.10 vehicles will both invest in liquid assets, implementing their strategies via ETFs, according to the publication. The former reportedly has a more conservative risk profile, allowing maximum volatility of 5 per cent and with an annual target return of 110 basis points above the Eonia – the overnight reference rate for the euro. The V.10 version, meanwhile, has maximum volatility of 10 per cent and targets an annual return of Eonia + 250 basis points.

The third fund, the BBVA Quality Valor Fund, will reportedly use the same investment principles but invest in actively managed funds instead of ETFs, while targeting an annual return of Eonia + 150 basis and volatility of around 4 per cent.