Financial planner Informed Choice has criticising the bulk of absolute return funds for charging unjustifiably high fees and lacking consistency of returns.
UBS has closed its underperforming Absolute Return Bond offering after assets dwindled to £15m.
Since its creation in 2008, the absolute return sector has been a bone of contention for intermediaries.
Ian Heslop, manager of the Old Mutual Global Equity Absolute Return fund, explains why investors in volatile markets should focus on avoiding the lows, even if it means missing the highs.
City Financial is to take over management of Octopus Investments' Absolute UK Equity fund in a move which will see manager David Crawford join the group.
Consumer group Which? has listed absolute return funds and task-based income protection cover among a list of 'financial products to avoid'.
BlackRock's Absolute Return manager Mark Lyttleton has conceded he took long positions in the wrong shares in 2011, leading to disappointing performance.