Five absolute return funds weathering the storm

Since its creation in 2008, the absolute return sector has been a bone of contention for intermediaries.

Last year more than half of the funds in the IMA Absolute Return sector produced a negative return, failing to deliver upon their investment objective of producing an absolute return in any market conditions. However, despite the negative connotations attached to the sector there are a number of diamonds beneath the rough. On a two year view, 35 of the 49 funds have produced a positive return, giving the sector an average return of 3.88%, according to Morningstar.  When equity markets corrected last summer in response to the eurozone crisis escalating, the average absolute return f...