The Financial Conduct Authority (FCA) has targeted the absolute return sector in its asset management study, suggesting there is a "relatively high likelihood" an absolute return fund would provide negative performance.
While acknowledging absolute return funds can fulfil a role for investors, the FCA highlighted a myriad of concerns about the sector, which has grown substantially in recent years. The Targeted Absolute Return sector was the Investment Association's best-selling fund grouping in 2015, and Standard Life's Global Absolute Return Strategies (GARS) fund, one of the largest of any sector in the UK, has grown to a total of £26.6bn assets under management - as of 10 October 2016. Newton's and Invesco's absolute return funds follow at £9.8bn and £7.2bn under management respectively. Absolute ...
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