The place of absolute return investing in asset management

Absolute returns

It is likely that in 2008 volatility will remain high and spreads wide. Absolute return managers should relish this opportunity to generate alpha and demonstrate the flexibility of absolute return investing. By Anne-Sophie Girault, global product specialist - absolute return, ABN Amro Asset Management

Even without clear delineation and classification, absolute return funds have become very popular, very quickly. This product family has grown particularly rapidly over the past two years with EUR60bn assets under management (in Europe, end of November 2007) purporting to offer an absolute return investment strategy, and the asset management industry has clearly identified absolute return investing as being at the top of clients' wish lists. Until the TMT bubble burst in 2000, relative-to-benchmark investing was the name of the game. However, the subsequent collapse fanned a yearning for ...