Absolute return funds tackle capacity concerns as inflows soar

Anna Fedorova
clock • 2 min read

Absolute return providers have been forced to respond to capacity questions by changing fund remits or even soft-closing vehicles as flows into the sector leap this year.

As investors continue to pile money into absolute return strategies, some groups have seen their vehicles more than double in size since the start of 2013, raising issues about capacity constraints. For larger funds, such as the popular £18.6bn Standard Life Investments GARS strategy, these inflows are not such a concern due to their global multi-asset capability, but smaller funds with a narrower focus may risk reaching capacity if these strong flows continue. Ben Willis (pictured), head of research at Whitechurch Securities, said: "Where absolute return funds focus on just one speci...

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