Repairing a TAR-red reputation: Time to show some love to the targeted absolute return sector

Deep Dive into absolute return

clock
Juliet Schooling Latter of FundCalibre
Image:

Juliet Schooling Latter of FundCalibre

It has been a rocky road for funds in the IA Targeted Absolute Return sector in the past decade or so, as investors have gradually fallen out of love with it.

Pessimists would tell you the reasons for the fall from grace are simple - absolute return funds have not delivered on their promises to investors, with capital not being protected during periods of volatility, while decent returns have not been garnered in the good times either. Everything about the sector has been challenging - name, definition and, perhaps most importantly, its wide range of constituents. The sector's initial success came out of the credit crunch, when investors' hunger for funds with lower volatility reached new heights. The premise of consistent mid-single digit ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Absolute Return

Bestinvest's bi-annual Spot the Dog finds over £45bn is still in underperforming portfolios

Bestinvest's Spot the Dog finds fewest underperformers in six years

Number of dog funds more than halves

clock 08 August 2022 • 4 min read
The £237m Baillie Gifford British Smaller Companies Fund was rated as not providing value.

Baillie Gifford UK equity strategies suffer low ratings in AoV

One red and four amber funds

clock 08 August 2022 • 2 min read
David Coombs, head of multi-asset at Rathbones Unit Trust Management

Rathbones' Coombs: Multi-asset funds 'called it right' but unable to combat hardship

Rathbone Multi-Asset Strategic Growth

clock 05 August 2022 • 3 min read
Trustpilot