Did Absolute Return Funds Deliver in Q1?

Absolute returns are designed to deliver whatever the weather. We look at how well they held up in the sell-off 

Annalisa Esposito 21 April, 2020 | 9:09AM

absolute return

While investors may have hoped absolute return funds would hold up relatively well in the drama of the sell-off, just one in four funds managed to produce positive returns, Morningstar Data reveals.

Absolute return funds are not easy to compare; not only do they have different levels of risk  but their underlying holdings can vary vastly. The 121-strong group is a melting pot of strategies and asset classes. “When looking at this sector you might be comparing a fund that invests in equities with one that invests in bonds and a variety of other things, and that's important to bear in mind if you are comparing performance,” warns Rob Morgan, investment analyst at Charles Stanley.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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