Deep Dive: Absolute return is not absolutely dead

Four years of consistent sector outflows

Eve Maddock-Jones
clock • 5 min read

Pre-2008, absolute return portfolios were heralded as the all-weather investment option, striving to deliver positive returns – regardless of the market environment – by making use of the investment strategies and vehicles available to them.

In the golden years of AR, ASI Global Absolute Return Strategies (GARS), Invesco Global Total Return (GTR) and Aviva Investors Multi Strategy Targeted Return (AIMS) were some of the biggest funds in the industry, housing several billions between them. But since then, the asset class "has fallen a long way from grace", according to Ruli Viljoen, the head of manager selection at Morningstar. 2021 was the fourth consecutive year of outflows from absolute return funds, according to Morningstar, and in a study carried out by Investment Week, only 56 out of 108 AR funds have achieved their ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Absolute Return

Aviva Investors backs absolute return despite end of GARS and Invesco Global Targeted Returns

Aviva Investors backs absolute return despite end of GARS and Invesco Global Targeted Returns

'Increased client interest'

Valeria Martinez
clock 28 September 2023 • 3 min read
FundCalibre Elite Radar: Artemis Target Return Bond

FundCalibre Elite Radar: Artemis Target Return Bond

‘Target return’

Darius McDermott
clock 21 October 2022 • 4 min read
Investors eye absolute return despite continued poor performance since Brexit

Investors eye absolute return despite continued poor performance since Brexit

56 out of 108 have 'delivered' since 2016

Eve Maddock-Jones
clock 25 August 2022 • 4 min read
Trustpilot