What are the Alternatives to Absolute Return Funds?

After absolute return funds failed to protect investors in last year’s market downturn, many have suffered huge outflows as buyers look elsewhere for protection

Anna Fedorova 25 November, 2019 | 3:03PM

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Absolute return funds have gone from being a darling of the investment world to one of the most unloved sectors in the past 18 months, as some of the most overhyped strategies failed to deliver during a volatile 2018.

The Targeted Absolute Return sector has been the worst seller among retail investors in eight out of the 12 months to the end of September, according to Investment Association data. Over the course of 2018, it shed some £2.2bn. Much of this was the result of poor performance, with the average fund in the sector down 2.2%, according to Chelsea Financial Services. 

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About Author

Anna Fedorova  Anna Fedorova is a freelance journalist writing on investment and personal finance

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