The £207m Threadneedle UK Absolute Alpha Fund has seen a good performance due to the stock picking ability of its managers. On the other hand, the £339m Kames UK Equity Absolute Return Fund is a genuine market neutral fund with a much lower volatility than its rival.
Purely from a sector perspective, experts noted that it is difficult to define the performance of absolute return funds as they can employ a very wide range of different strategies.
However, there are clear pros and cons for each of these funds as investigated by three industry experts.
Patrick Connolly, certified financial planner at Chase de Vere, Laith Khalaf, senior analyst at Hargreaves Lansdown, and Richard Troue, head of investment analysis at Hargreaves Lansdown give their insight and thoughts on the funds.