Trustnet Magazine 85 June 2022 | Page 52

Performance of funds vs sector and index
SECTOR PROFILE

Performance of funds vs sector and index

Name
1yr (%)
3yr (%)
5yr (%)
10yr (%)
VT Argonaut Absolute Return
27.8
66.6
82.8
156.8
BlackRock European Absolute Alpha
3.7
12.7
25.9
42.7
JPM Global Macro Opportunities
-8.5
8.3
23.5
N / A
IA Targeted Absolute Return
1.2
8.9
9.0
30.0
FTSE All Share
8.3
18.4
22.2
117.0
Source : FE Analytics
have their heads in the sand and are holding the same growth stocks that have done well over the last decade . “ This is the equivalent of driving a car while looking in the rear-view mirror with your fingers crossed ,” he says . “ Unfortunately , rear-view mirror investing is still how most people in the financial industry pick stocks and select funds .” Instead , Norris says investors should think about diversifying away from the overall direction , or beta , of the stock market . “ Funds that deploy hedging strategies but also bet against stocks they don ’ t like , because the business model is unsustainable or the valuation is too high , can offer a valuable non-correlated return profile that provides real diversification ,” he says . Real assets should also be uncorrelated with equities , and are regarded as a natural hedge against inflation . However , Hovenden is unconvinced by this argument , pointing out the reality doesn ’ t tend to match the theory , particularly if inflation leads to further volatility in stock markets . “ The problem I have is that most of the property and infrastructure vehicles have equity wrappers around them ,” he says . “ This means that if markets turn down , regardless of what the underlying assets are , their discounts to NAV will widen , meaning you get equity correlation .”
/ 52 / trustnet . com