Absolute return

Are ‘safe’ investments truly secure?

Over the past year, markets have seen a sea change. Gone are the days of hopeful talk of “global synchronised growth” and the continuation of the bull market; instead, there has been a return to volatility and growing fears of difficult times ahead. In the face of such bearish sentiment, should nervous investors think about returning their portfolios towards more defensive investments? The answer to that question depends to some extent on your timescale.

Absolute return funds once again fail to hit the target

As interest rates rise and quantitative easing is withdrawn, stock and bond markets look set to lose an important support mechanism. Share prices may make further progress, but they are swimming against the tide. In this environment, fund investors may well be looking for an alternative to equity and bond funds, such as targeted absolute return funds.

Investors choose shares over bonds

Investors’ confidence may be returning, according to figures that show sales of equity funds have outsold those of fixed income funds for the first time in 12 months.

Absolute return funds: absolutely average?

The absolute return sector is one of the newest and fastest-growing Investment Management Association fund categories, having expanded from 17 funds when it was set up in 2008 to 69 today. Of those, 13 have launched since the end of June 2010.