Trustnet Magazine 85 June 2022 | Page 49

IA Targeted Absolute Return

“ Absolute return funds have always , in theory , had the ability to produce returns uncorrelated to the major asset classes , but there have been many more failures than successes ”

Chris Metcalfe Investment and managing director at IBOSS

homogenous . Global macro mandates sit alongside so-called absolute return funds , while investors can also choose short-dated bond funds along with equity products focused on the UK , Europe and the US . As a result , while the sector is flat so far this year , the difference in performance across the peer group is huge . For example , while the best performer – AQR Systematic Total Return – is up 42.7 %, the worst – Thesis TM Neuberger Berman Absolute Alpha – has fallen 12.1 %. “ If we thought the Federal Reserve and other central banks had contained inflation and there was less confusion surrounding the
Issue 85 - June 2022 / 49 /