Morningstar has ditched the absolute return category from its sector classifications, saying too many funds in the space have failed to produce a positive return.
The absolute return funds will slot into one of eighteen newly created alternative investment categories, which Morningstar said will provide investors with more transparency. Christopher Traulsen, the group's director of European and Asian fund research, said it will now be easier for investors to research funds. "Absolute Return as a fund category definition has become too associated with a broader industry marketing term that has made performance promises that have often failed to deliver," said Traulsen. "To make our categories more useful and transparent to investors, we revie...
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