Sector report: Making sense of the disparity in Absolute Return

Absolute return investments have been one of the more controversial and challenged areas of the market. They came under scrutiny after many funds delivered materially negative returns during the financial crisis and again during the market turmoil in summer of 2011, therefore failing to deliver on their promise to generate steady and positive returns with lower volatility in all market conditions. In addressing this, the Investment Association (IA) undertook a review of the sector in February 2013 and subsequently announced a change in the name of the sector to 'Targeted Absolute Return'...