Extreme measures

Absolute return funds show particular resilience in extreme times and could become a core element in portfolio planning, particularly in the current market

How can absolute return funds fit into portfolio planning? Despite being a commonly asked question, there is not a definitive answer and as with most things 'it depends'. While this is a fairly unsatisfactory answer, the reality is that every absolute return fund is different and every adviser has a different investment process depending on their clients' needs and their compliance officers' wants. So what do absolute return funds have in common? To qualify for the newly formed IMA Absolute Return sector, a fund must be managed with the aim of delivering absolute (ie more than zero) retur...