Funds in the Investment Association's Targeted Absolute Return (TAR) sector failed to "keep their promise" once more in 2020 following markedly "varied" and "poor" returns throughout the course of the year, according to some investment professionals, who warned the market area will likely suffer prolonged outflows over the medium-to-long term.
Others, however, have suggested that the market area has performed "broadly in line with other IA sectors" over the past 12 months, and that there is "still a case to be made" for holding some of these vehicles as part of a diversified portfolio. This comes following £12.6bn of outflows from the sector over the course of 2020, according to data from FE fundinfo, marking the third consecutive year that the market area has lost money. Darius McDermott: Assessing the almost-indefensible absolute return sector In 2018, the TAR sector saw outflows of £14.1bn which, despite the fact only...
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