2006 a failure for absolute return

The survey by Standard and Poor’s Fund Services also suggests most funds failed to even match the performance of cash. None of the funds surveyed were able to meet their own investment objectives, usually at least 100bp over Libor before fees. S&P put much of the underperformance down to a difficult year for fixed-income investment. But Kate Hollis, lead analyst at Standard & Poors, highlights other reasons for poor performance. "A number of funds also had reasonably high exposures to emerging market debt and these were caught by the emerging debt wobble in Q2 of 06," she says. Hollis ...