Sensible Investing Logo
Subscribe

Acuity

[mediatitle]
  • Description
  • Share

Acuity 34: Absolute return strategies are not what they seem

November 14, 2016
Share your comment
701 views

The promise of generating stable returns in both up and down markets feels like an attractive strategy for investors to adopt, and ‘absolute return’ funds have certainly attracted large sums of cash since the credit crisis.

Yet the reality of being able to deliver on this promise is far from convincing: strategies are varied, complex and hard to compare; fees are high, relative to sensible alternatives; and correlations to underlying assets – such as equities and bonds – are higher than might be expected.

A surprising proportion of funds have delivered absolute losses to investors over horizons of one year and even over three years.

At the end of the day, there are no risk-free returns above cash returns.

Download Document

Share this

Please share this content using any of the share buttons below. Please see this page for guidelines on embedding videos and other content in your own website or online marketing.

Share your comment

* Required
Name *
Email Address
Share your comment *
Privacy Policy
Submit