How Have Absolute Return Funds Fared in Volatile Markets?

Money has been pouring into Absolute Return funds - but which ones have continued to deliver for investors as market volatility increases? 

Sam Shaw 29 February, 2016 | 3:02PM

If last year’s financial markets were characterised by uncertainty, this year has grabbed that sentiment and cranked it up a notch.

We kicked off with volatility not seen for some time: the Chicago Board Options Exchange (CBOE) Volatility Index, often referred to as ‘the Vix’, or for some, the ‘fear gauge’, looks at the implied volatility of S&P 500 index options. This means it provides a measure of the market’s expectations of stock market volatility, looking forward to the next 30-day period.

The first week of trading in 2016 saw the Vix jump from its 19-20% levels to up above 27%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aegon UK Equity Absolute Ret GBP A Acc116.08 GBP-0.10
ASI Global Absolute Ret Strat R Acc79.87 GBP0.15
Aviva Investors Mlt-Strat Trgt Inc 2£Inc79.43 GBP0.37
BNY Mellon Real Return A GBP Inc130.26 GBP0.39
Invesco Global Tgtd Rets UK Acc56.38 GBP0.39

About Author

Sam Shaw  is a financial journalist and broadcaster writing for Morningstar.

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