In for the high jump: Absolute return flows 'turning corner' despite investors shunning sector giants

Underperformance still present – for now

A handful of the largest Targeted Absolute Return sector funds have given the underperforming peer group a "bad rep" over recent years, but investors appear to be waking up to opportunities outside the big brand names, research suggests.

Using FE data, Investment Week found an equally weighted portfolio of the five largest funds in the absolute return sector - which, with a combined AUM of £40.12bn, account for almost 50% of the sector's total AUM - has failed to outperform the basic rate of interest in the UK over the past three years, returning 1.13%.  Meanwhile, the IA Targeted Absolute Return sector average is up 4% over the same timeframe, having comfortably outperformed base interest rates.  When the five behemoths - Invesco Global Targeted Returns (UK), Standard Life Global Absolute Return Strategies (GARS), Me...