Darius McDermott: Don't write off all absolute return funds

Three fund picks

clock • 4 min read

Darius McDermott puts the case for investors and their advisers keeping faith with the Targeted Absolute Return sector - providing they look at funds individually, rather than attempting comparisons between peers

The Targeted Absolute Return fund grouping has come in for its fair share of criticism recently. In principle, this sector is meant to be the prime hunting ground for investors who want access to funds providing low to mid-single-digit returns, with lower volatility, regardless of market conditions. In practice, however, it has proved anything but. An average return of 6.8% for funds in that sector over the five years to 1 March 2019, while not great, reinforces what these funds are supposed to do. If you look beneath the surface, however, you can see the disparity of returns - with the ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Markets

Market Movers: Advisers expecting healthy UK equities growth

Market Movers: Advisers expecting healthy UK equities growth

‘It’s no surprise investors are warming up to UK equities again’

Professional Adviser
clock 13 June 2024 • 1 min read
OBR shows UK growth flatlined in April as general election looms

OBR shows UK growth flatlined in April as general election looms

Challenges PM's claims 'the economy has turned a corner'

Eve Maddock-Jones
clock 12 June 2024 • 1 min read
Back to low inflation: How can we expect the rest of 2024 to play out?

Back to low inflation: How can we expect the rest of 2024 to play out?

‘By August, the conditions will be met to start cutting’

Charlotte Moore
clock 23 May 2024 • 4 min read