Absolute return a "potential minefield" for investors - AJ Bell

"A massive spread in returns (and losses)"

James Baxter-Derrington
clock
Only one absolute return fund has achieved positive returns every year for the past decade
Image:

Only one absolute return fund has achieved positive returns every year for the past decade

Over the course of ten years, cash would have returned investors just 1.45%, a figure well below inflation, but three absolute return funds still failed to beat these returns, according to research from AJ Bell.

The research reveals that out of 38 funds in the sector, only Janus Henderson UK Absolute Return has beaten cash returns in every year of the past decade, while another three, BlackRock European Absolute Alpha, Veritas Global Real Return and Premier Multi-Asset Absolute Return, managed positive returns in nine out of ten years. In contrast, Insight Absolute Insight Currency, GAM Star Global Rates and Jupiter Absolute Return failed to beat cash over the last decade. The latter two have lost a respective -8.1% and -4.1% over the time frame in question, while the Insight fund has broadly fl...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Funds

Royal London group chief executive Barry O'Dwyer

RLAM AUM shrinks 9% in H1 but sustainable funds remain popular

9% decline in AUM

clock 05 August 2022 • 2 min read
GMAP Dynamic also received a red rating

Property fund raises red flags at Royal London

Assessment of Value report

James Baxter-Derrington
clock 04 August 2022 • 2 min read
Allianz planning merge its UK Mid Cap  UK Listed Opportunities funds

Allianz UK Mid Cap fund to merge with UK Listed Opportunities as AUM shrinks

Pending shareholder approval

clock 04 August 2022 • 3 min read
Trustpilot