The Bigger Picture: Will the absolute return sector ever live up to expectations?

Follows a disappointing 2018

Lauren Mason
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Absolute return funds have been slated for higher rates of volatility
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Absolute return funds have been slated for higher rates of volatility

Lauren Mason analyses another torrid year of performance for absolute return funds and asks commentators where the strategies can add value for clients in the current climate.

A number of funds in the Investment Association's Targeted Absolute Return sector continued to disappoint investors throughout 2018, but some investment professionals have described conditions for funds in the sector as being worse than they were in 2008, and argued it is unfair for investors to shun the area entirely.  The sector has faced heightened criticism over recent years with funds being blasted for higher-than-expected levels of volatility, and far underperforming their benchmarks or failing to achieve positive returns for investors. Meanwhile, the IA sector itself has been p...

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