The least volatile funds over that period, according to FE Analytics data, included a broad mix from Insight’s Absolute Insight Equity Market Neutral and Absolute Insight funds, as well as RWC Core Plus, Kames UK Equity Absolute Return and Aberdeen Absolute Return Bond.
While acknowledging that, for some funds at least, absolute return seems to be an “aspiration rather than the outcome”, Tony Yousefian, a consultant at Albemarle Street Partners says most have delivered regardless of the markets.
Lack of alternatives
“There is a real lack of alternatives out there for investors – if equities are expensive, bonds are expensive, and there are zero returns for money on deposit, that’s why absolute return funds have done well, and the fact that there are some very talented people out there,” he says.
He picks out the likes of Kames Absolute Return Bond Fund in the fixed income space, as well as Henderson UK Absolute Return and Smith & Williamson Enterprise in equities.
Still, he warns the sector in general remains incredibly difficult to review, given the various strategies and numerous benchmarks involved.
