Nine targeted absolute return funds to watch

Morningstar co-head of investment consulting and portfolio management Dan Kemp gives his take on funds within the targeted absolute return sector

Nine targeted absolute return funds to watch

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The targeted absolute return sector mixes a number of different strategies with varied outcomes, but not all have delivered.

Fund sectors have traditionally been defined along asset class lines. As asset allocation has long been recognised as the key driver of investment returns; portfolio advisers typically start the portfolio construction process by selecting the asset class mix before populating this model with appropriate funds.

These single asset funds therefore represent ‘components’ of the portfolio. In contrast, those who do not wish to engage in individual asset selection and portfolio construction are able to choose ‘solution’ funds from the mixed asset sectors.

Click here for a run-down of funds within the sector

 

 

 

 

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