Unloved targeted absolute return sector suffers £12bn outflows in 2020

'Varied' and 'poor' performance slammed

Funds in the Investment Association's Targeted Absolute Return (TAR) sector failed to "keep their promise" once more in 2020 following markedly "varied" and "poor" returns throughout the course of the year, according to some investment professionals, who warned the market area will likely suffer prolonged outflows over the medium-to-long term.

Others, however, have suggested that the market area has performed "broadly in line with other IA sectors" over the past 12 months, and that there is "still a case to be made" for holding some of these vehicles as part of a diversified portfolio. This comes following £12.6bn of outflows from the sector over the course of 2020, according to data from FE fundinfo, marking the third consecutive year that the market area has lost money. The Big Question: What is your top fund pick for 2021? In 2018, the TAR sector saw outflows of £14.1bn which, despite the fact only 11 funds in the sec...