Charles Hovenden: Absolute Return funds are failing to deliver

'Dross'

clock • 7 min read

Absolute Return funds have seen an exodus over the last couple of years and, in this piece, Charles Hovenden explores why the once popular sector is on the decline

A return of cash plus 3% is hardly worth bothering with, right? After all, the FTSE All Share Index (including gross dividends) has returned more than 11% p.a. since the end of the financial crisis in 2009. And that is despite the tortuous Brexit shenanigans and the stock market's painful 10% decline in 2018.  Since the beginning of the century, however, a return of cash plus 3% p.a. would have beaten the return of the same FTSE All Share Index by a whopping 62%. Indeed, since the beginning of 2000 (and up to the end of October 2019), The FTSE index has delivered an annualised return of ...

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