Less than half of absolute return funds beat inflation

Just 43% of funds in the IMA Absolute Return sector have managed to provide investors with a real return greater than the rate of inflation.

Data from FE Analytics shows of the 56 funds with a one-year performance history, just 24 outperformed both CPI and RPI inflation, resulting in 52% of funds losing money in real terms. CPI stood at 4.2% in June, while RPI was 5%. The IFDS IM Octopus Absolute European fund was the biggest serial underperformer, losing 8.3%, while two offerings from Schroders completed the bottom three. The Schroder ISF Asian Bond Absolute Return fund posted a 7.04% loss, while the Schroder ISF Emerging Markets Debt Absolute Return fund fell 6.14%. FE Analytics added the performance figures do not...